A few years ago I helped professor Mike Luca write an article called Why COOs Should Think Like Behavioral Economists, which starts with the following story:When Yelp was a startup with just 15 employees, the office manager began to stock the kitchen with drinks and snacks to get everyone through the long afternoons. Juice, water, fruit, chips, and as much candy as could be stuffed into the small kitchen drawer. Being at work was like being, well, a kid in a candy shop: a bottomless supply of Snickers, Twix, 3 Musketeers, M&M’s, Almond Joys — the list goes on.And at first, everyone loved it. If a 3 PM hunger pang struck, it was a delight to find a Snickers to nosh on, without even having to leave the building. But within two weeks, one of us (Geoff, who was COO at the time) realized he was averaging a Snickers bar per day. This was a bit odd for two reasons. First, he had barely eaten candy bars in the years before that. Second, he didn’t really want to eat candy bars; he just did it as part of his newfound afternoon routine. A quick poll among coworkers revealed that the whole company had experienced a sharp uptick in candy bar consumption. Simply by existing, the candy drawer had created a cadre of candy eaters.
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Bursts of Color - Candy, Booze and Other…
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A few years ago I helped professor Mike Luca write an article called Why COOs Should Think Like Behavioral Economists, which starts with the following story:When Yelp was a startup with just 15 employees, the office manager began to stock the kitchen with drinks and snacks to get everyone through the long afternoons. Juice, water, fruit, chips, and as much candy as could be stuffed into the small kitchen drawer. Being at work was like being, well, a kid in a candy shop: a bottomless supply of Snickers, Twix, 3 Musketeers, M&M’s, Almond Joys — the list goes on.And at first, everyone loved it. If a 3 PM hunger pang struck, it was a delight to find a Snickers to nosh on, without even having to leave the building. But within two weeks, one of us (Geoff, who was COO at the time) realized he was averaging a Snickers bar per day. This was a bit odd for two reasons. First, he had barely eaten candy bars in the years before that. Second, he didn’t really want to eat candy bars; he just did it as part of his newfound afternoon routine. A quick poll among coworkers revealed that the whole company had experienced a sharp uptick in candy bar consumption. Simply by existing, the candy drawer had created a cadre of candy eaters.