The valance refers the value the individual personally places on the rewards. This is a function of his or her needs, goals, and values. Learning that takes place when the learner recognizes the connection between a behavior and its consequences. Removing whatever is currently reinforcing the undesirable behavior. Variable, erratic reinforcement schemes are more effective than steady reinforcement schedules.
People are genetically hard-wired to make certain associations.
For example, sickness is associated with food. In a company, stockholders are principals and managers are agents. The goal of a compensation system is to align principals' and agents' interests. Executives who are compensated based on financial performance may favor diversifying the company since it evens out their incomes. But shareholders can diversify their portfolios on their own if they want.