What is the purpose of a budget?
What is important to take away from our discussion is that this is how norms are formed: we observe what happens to others in a social situation, how their behavior is treated by others, and if nothing bad happens and especially if something good happens, then that behavior is considered appropriate and new behaviors emerge. By rewarding the students who went after the $5 envelopes, I changed the social norm that it is inappropriate to go after free stuff. Many students still stay in their seats (as they did this time), preferring to watch others. Maybe they were interested in seeing whether the students who went for the muffins were rewarded or punished—but they started questioning in their minds whether that norm was valid in this case. See how you can shift people’s behavior by rewardi