Thaler Says Clawbacks Should be More Common

The video discusses the effectiveness of positive reinforcement compared to negative reinforcement, questioning why society often leans towards negativity. It examines the financial services industry, highlighting the prevalence of bonuses and the rarity of clawbacks. The discussion suggests that more frequent use of clawbacks could have mitigated some effects of the financial crisis. The video concludes by acknowledging the power of negative reinforcement, despite its infrequent use due to its unpopularity.

What is considered more effective than negative reinforcement according to the video?

• Punishment

• Neutral feedback

• Positive reinforcement

• Ignoring the behavior

Why does the speaker believe society often defaults to negative reinforcement?

• It is more cost-effective

• It is easier to implement

• It is rarely used

• It is more powerful

In which industry are bonuses a significant part of income?

• Retail

• Financial services

• Education

• Healthcare

What is a 'clawback' in the context of financial bonuses?

• A tax on bonuses

• A bonus given for exceptional performance

• A penalty for poor performance

• A requirement to return previously given bonuses

What might have been prevented if negative reinforcement was more common in the financial industry?

• More investments

• Higher employee turnover

• Financial crises

• Increased profits