Episode 19: 7 Economics Tricks To Help Keep Resolutions

Episode Summary

Executive Summary: Bloomberg Benchmark explores why New Year’s resolutions fail and how behavioral economics can improve follow-through. With Wharton professor Katie Milkman, the hosts outline seven evidence-based tactics—fresh starts, temptation bundling, commitment devices, if-then planning, avoiding backup plans, public accountability, and restarting after failure—showing how small behavioral nudges can increase motivation and reduce self-sabotage.

Main Topics: Behavioral economics and self-control (Priority: 5/5): The episode contrasts traditional economics’ rational-agent model with behavioral economics’ view of people as inconsistent, habit-driven decision-makers who need practical tools to keep resolutions. Fresh-start effect (Priority: 5/5): Milkman explains that temporal landmarks like New Year’s, Mondays, birthdays, holidays, or new jobs create psychological clean slates that boost goal-setting and action. Temptation bundling (Priority: 5/5): The discussion highlights pairing a desired but healthy behavior with an enjoyable indulgence—such as only listening to audiobooks while exercising—to make good habits more appealing. Commitment devices and financial stakes (Priority: 4/5): The episode explains how putting money on the line can increase adherence to goals like exercise or smoking cessation, even though traditional economics would predict people would avoid self-punishment. Planning, accountability, and public commitment (Priority: 4/5): The hosts cover the power of concrete if-then plans, public declarations on social media, and the motivational downside of backup plans that make failure feel acceptable. Resetting after failure (Priority: 4/5): The final strategy emphasizes that missed goals are not final; people can use new fresh-start moments, such as the first day of spring, to recommit and begin again.

Key Arguments: People are not perfectly rational; behavioral economics better explains why resolutions fail and how to design around self-control problems. Fresh-start moments increase motivation and action, leading to more goal-setting, gym attendance, and even search interest in dieting. Temptation bundling works because it links a pleasurable reward to a desired habit, making the behavior itself more attractive. Commitment devices are effective because the prospect of losing money motivates people to follow through on health goals. Specific implementation plans improve follow-through because they create memory cues, commitment pressure, and obstacle planning. Backup plans can reduce motivation by making the primary goal feel less urgent or necessary. Public accountability increases adherence because people dislike disappointing others and being seen as inconsistent. Failure should be treated as temporary; people can re-enter a goal at the next fresh-start moment.

Data Points: Length of Stock Movers reports: five minutes or less - Bloomberg promo describing the new Stock Movers audio reports Frequency of Stock Movers delivery: throughout the day - Bloomberg promo describing delivery cadence Resolution ranking: 10 most tweeted resolutions listed - Twitter’s list of 2016 resolutions discussed on the show Gym membership cost: roughly $50 per month - Example used to show how failed resolutions can become expensive Running shoes cost: about $100 - Part of the cost breakdown for a fitness resolution Workout clothes cost: about $100 - Part of the cost breakdown for a fitness resolution Wearable tracker cost: about $100 - Example of added spending tied to getting in shape Wasted annual cost: about $1,000 per year - Estimated cost of abandoning a fitness resolution after buying related gear and memberships Share willing to pay for temptation bundling: about 60% - Milkman cites study where participants paid to restrict access to tempting content unless they exercised Fitness goal frequency: three times a week - Aki’s example of an app-based exercise commitment device Penalty for missing goal: $10 deducted from bank account - Aki’s commitment-device example Public date reminder example: March 20th - Milkman cites the first day of spring as a renewed fresh-start opportunity Resolution to quit alcohol: sober January - Tori’s personal New Year’s resolution Resolution to meditate: seven times a week - Aki’s personal New Year’s resolution

Pivotal Quotes: "There are these moments in our lives that feel like new beginnings." — Katie Milkman: Explaining the fresh-start effect and why New Year’s and other temporal landmarks boost motivation "What if I, for instance, only let myself watch the next episode of my favorite lowbrow TV show while I was exercising at the gym?" — Katie Milkman: Introducing temptation bundling as a way to make exercise more appealing "All hope is not lost." — Katie Milkman: Reassuring listeners that failure is temporary and they can restart at the next fresh-start moment

Implications: Listeners can use behaviorally informed tactics to make resolutions more achievable, while employers, apps, and wellness programs can design better adherence tools using motivation, accountability, and fresh-start timing.