Day Care Incentives
A manager of a day-care center in Christchurch, New Zealand has a clearly stated policy that parents are supposed to pick up their children by 4pm (16:00). But often parents are late. Each week, there is an average of eight late pickups. To combat tardiness, the manager of the center instituted a fine of $3 per child per incident. Surprisingly, the number of late pickups more than doubled, to twenty per week. Why?