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How Engagement Rewards Backfire: The Overjustification Effect and the Peak-End Rule

Imagine you’re a kid at a new school deciding where to sit for lunch. Another kid sees you and offers you some candy, saying they have some extra they don’t want. You eagerly accept the candy and sit with the kid. The next day, you run into the same kid and they offer you candy again, explaining that their parents keep packing their lunch with this candy they don’t like. This keeps happening every day - when you sit with this kid at lunch, they give you candy.

Then one day you go to the candy store and see that same kid buying lots of the candy they supposedly don’t like. You realize they are deliberately getting this candy to give to other kids to try to make friends.

What might you say to this kid if you confronted them? Would you explain that their actions are not only clearly manipulative but also counterproductive in the long run - that they may have an easier time making new friends right now, but these people are likely to be put off when they realize what’s going on, even if they had actually enjoyed spending time together? Might you suggest that the kid should focus instead on being genuinely enjoyable to spend time with and seek out people with compatible personalities and shared interests who actually like spending time with them?

This is basically how I feel about games with log-in bonuses.