Principle of Loss Aversion

People hate losing more than they love gaining.

So if I want to enforce people to behave a certain way, fining them for undesirable behavior will be more effective than rewarding them for desirable behavior.

So, punishment is more effective than rewards.

But what happens when you take them away? In which case, does the behavior continue?

In case of punishments, the behavior resumes to what it was. In case of rewards, the newly learned behavior goes on.

So, while present, punishment maybe more effective than reward. But if you want the behavior to continue, you should reward.

source: I am taking this Irrational behavior course on coursera.org taught by Dan Ariely from Duke, so all these psych posts in the next few days will be from there.