You’re probably familiar with lab experiments in which mice are conditioned to behave in a certain way by receiving sugar pellets for “good” behavior and electric shocks for doing the opposite. But what happens when the consequences are random or contradictory, i.e. when the same behavior sometimes is rewarded and sometimes is punished? The answer is that the mice become highly stressed and confused, and start to take no actions at all. In other words, they stop taking risks, which is the safest possible behavior.
Taking Risks in Tough Times
You’re probably familiar with lab experiments in which mice are conditioned to behave in a certain way by receiving sugar pellets for “good” behavior and electric shocks for doing the opposite. But what happens when the consequences are random or contradictory, i.e. when the same behavior sometimes is rewarded and sometimes is punished? The answer […]
January 18, 2011
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New!
HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.