I heard about a novel idea on the radio this morning for an incentive to lose weight or stopping smoking, which works for some people. It is based on an economic theory called Time Inconsistency combined with Loss Aversion. The Time Inconsistency theory says that a goal at the moment may be inconsistent with long-term goals. The example that was used was; “ I may prefer to enjoy an extra cookie today, even though my preference for tomorrow is to be slimmer”. Loss Aversion is human nature; people hate to lose something valuable.

The idea for weight loss, stopping smoking, or other difficult task is that you set goals and then if you don’t reach any goal you lose something valuable such as money. So Loss Aversion overrides Time Inconsistency.

The program described a plan in Philippines that was set up by a local bank. Smokers, who wanted to quit, put money each week in a savings account for six months. If they didn’t smoke during that time they got the money back with the interest. If they smoked (they agreed to undergo urine tests for nicotine) they lost their money.

For something like weight loss this can have one long-term goal, or probably better weekly goals. Let’s say your goal is to lose 2 lbs each week. You give an amount of money each week. This amount of money has to be something that is significant for you. Each week you meet your goal the money remains in the savings account, or wherever it is. Any week that you don’t lose 2 lbs that money is lost, for instance being donated to a charity.

Two Yale Professors have set up a website stickK.com that helps guide you through the process, provides additional information and will in the future commitment communities. Read more and listen to an audio of the program.

[tags]stickK.com, loss aversion, time inconsistency, weight loss, stop smoking[/tags]