Contrary to the popular belief that power corrupts, research suggests it acts as an amplifier. If a person is already "pro-social"—oriented towards helping others—power can increase their empathy and effectiveness. If they are selfish, power will magnify those negative traits.

The success of 'false choice' buttons stems from a cognitive bias called the 'framing effect,' which leverages loss aversion. People react more strongly to potential losses and negative self-perceptions than to potential gains. The brain is hardwired to avoid feeling stupid, making the negatively framed 'no' option a powerful deterrent.

In economic games, groups where members can punish others for not contributing to the collective good quickly establish strong cooperative norms and thrive. In contrast, groups without a punishment mechanism collapse as individuals act in their own self-interest, causing members to ultimately migrate to the more successful, punishing society.

Charlie Munger, who considered himself in the top 5% at understanding incentives, admitted he underestimated their power his entire life. This highlights the pervasive and often hidden influence of reward systems on human behavior, which can override all other considerations.

As Charlie Munger taught, incentive-caused bias is powerful because it causes people to rationalize actions they might otherwise find unethical. When compensation depends on a certain behavior, the human brain twists reality to justify that behavior, as seen in the Wells Fargo fake accounts scandal.

The principles influencing shoppers are not limited to retail; they are universal behavioral nudges. These same tactics are applied in diverse fields like public health (default organ donation), finance (apps gamifying saving), and even urban planning (painting eyes on bins to reduce littering), proving their broad applicability to human behavior.

Applying financial concepts to philanthropy reveals that public acceptance hinges on framing. For example, 'Universal Basic Income' is often rejected as a handout, but functionally similar policies framed as 'Earned Income Tax Credits' or 'Child Tax Credits' garner broad support by appealing to different values.

Despite emotional rhetoric, human behavior is fundamentally driven by incentives. Even the most ardent socialists will act as capitalists when presented with direct personal gain, revealing that incentive-based economics is a core part of human nature.

People are more motivated to avoid a loss than to acquire an equivalent gain, a principle known as loss aversion. In a study selling home insulation, framing the pitch as "if you don't, you'll be wasting 75 cents a day" had a 50-60% higher response rate than "you'll save 75 cents a day."