Thaler Says Clawbacks Should be More Common

The video discusses the effectiveness of positive reinforcement compared to negative reinforcement, questioning why society often leans towards negativity. It examines the financial services industry, highlighting the prevalence of bonuses and the rarity of clawbacks. The discussion suggests that more frequent use of clawbacks could have mitigated some effects of the financial crisis. The video concludes by acknowledging the power of negative reinforcement, despite its infrequent use due to its unpopularity.

What does the speaker suggest about the prevalence of clawbacks in the financial services industry?

How might the financial crisis have been affected by the use of negative reinforcement?