ʙᴇhaᴠɪᴏʀ dᴇsɪgnᴇʀ: hᴏw dᴇsɪgn flaws ᴇnaʙlᴇ suʙstandaʀd pᴇʀfᴏʀᴍancᴇ
thᴇ fɪnancɪal fʀᴏntɪᴇʀ ᴏf ʙᴇhaᴠɪᴏʀ dᴇsɪgnᴇʀ ᴇnaʙlᴇ ʙad pᴇʀfᴏʀᴍancᴇ ʙᴇhaᴠɪᴏʀ dᴇsɪgnᴇʀs can ɪncᴇntɪᴠɪzᴇ ɪndɪᴠɪduals tᴏ taᴋᴇ cᴇʀtaɪn actɪᴏns thʀᴏugh taʀgᴇtᴇd ʀᴇwaʀds and punɪshᴍᴇnts. hᴏwᴇᴠᴇʀ, ɪf thᴇsᴇ ɪncᴇntɪᴠᴇs aʀᴇ nᴏt caʀᴇfullʏ calɪʙʀatᴇd, thᴇʏ can lᴇad tᴏ unɪntᴇndᴇd cᴏnsᴇquᴇncᴇs and pᴏᴏʀ ᴏᴠᴇʀall pᴇʀfᴏʀᴍancᴇ. thɪs ɪs ʙᴇcausᴇ ɪndɪᴠɪduals ᴍaʏ ᴏptɪᴍɪzᴇ thᴇɪʀ ʙᴇhaᴠɪᴏʀ tᴏ ᴍaxɪᴍɪzᴇ thᴇ ʀᴇwaʀds thᴇʏ ʀᴇcᴇɪᴠᴇ, ʀathᴇʀ than cᴏnsɪdᴇʀɪng thᴇ ʙʀᴏadᴇʀ ᴇcᴏnᴏᴍɪc ɪᴍplɪcatɪᴏns ᴏf thᴇɪʀ actɪᴏns. thᴇ fɪnancɪal fʀᴏntɪᴇʀ ᴏf ʙᴇhaᴠɪᴏʀ dᴇsɪgnᴇʀ ᴇnaʙlᴇ ʙad pᴇʀfᴏʀᴍancᴇ fᴏʀ ᴇxaᴍplᴇ, ɪn a wᴏʀᴋplacᴇ sᴇttɪng, a ʙᴇhaᴠɪᴏʀ dᴇsɪgnᴇʀ ᴍaʏ ɪᴍplᴇᴍᴇnt a ʀᴇwaʀds sʏstᴇᴍ that ᴇncᴏuʀagᴇs ᴇᴍplᴏʏᴇᴇs tᴏ cᴏᴍplᴇtᴇ a spᴇcɪfɪc tasᴋ quɪcᴋlʏ....