Monetary incentives can backfire while nonstandard interventions, such as framing, can be
effective in influencing behavior. I review the empirical evidence on these two sets of
anomalies. Paying for inherently interesting tasks, paying for prosocial behavior, paying too
much, paying too little, and providing too many options can all be counterproductive. At the
same time, proper design of the decision-making environment can be a potent way to induce
certain behaviors. After presenting the empirical evidence, I discuss the relative role of …