The effects of financial incentives in experiments: A review and capital-labor-production framework. (With commentaries) (Q1972117)
From MaRDI portal
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | The effects of financial incentives in experiments: A review and capital-labor-production framework. (With commentaries) |
scientific article |
Statements
The effects of financial incentives in experiments: A review and capital-labor-production framework. (With commentaries) (English)
0 references
27 August 2000
0 references
The authors review 74 experirnents with no, low, or high performance-based financial incentives. The modal result is no effect on mean performance (though variance is usually reduced by higher payment). Higher incentive does improve performance often, typically judgment tasks that are responsive to better effort. Incentives also reduce ``presentation'' effects (e.g., generosity and risk-seeking). Incentive effects are comparable to effects of other variables, particularly ``cognitive capital'' and task ``production'' demands, and interact with those variables, so a narrow-minded focus on incentives alone is misguided. We also note that no replicated study has made rationality violations disappear purely by raising incentives.
0 references
experimental economics
0 references
rationality
0 references
bounded rationality
0 references
judgment
0 references
incentives
0 references
experimental methodology
0 references