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Awards, incentives and mutual benefit

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  • Robert Sugden

    (University of East Anglia)

Abstract

Frey argues that if buyers and sellers of labour understand their relationship merely as exchange, workers’ intrinsic motivation can be impaired; this problem can be partially overcome by using awards as a supplementary reward mechanism. I argue that this proposal is self-defeating. In an economy that relies on the division of labour, it is an unavoidable fact that individuals are subject to the will of others; award-giving practices are merely camouflage. However, recognising this fact need not impair anyone’s sense of autonomy as a paid worker if participation in market exchanges is understood as expressing intentions for mutual benefit.

Suggested Citation

  • Robert Sugden, 2019. "Awards, incentives and mutual benefit," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(1), pages 5-16, March.
    • Handle: RePEc:spr:inrvec:v:66:y:2019:i:1:d:10.1007_s12232-017-0288-1
    DOI: 10.1007/s12232-017-0288-1
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    References listed on IDEAS

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    1. Bruni, Luigino & Sugden, Robert, 2008. "Fraternity: Why The Market Need Not Be A Morally Free Zone," Economics and Philosophy, Cambridge University Press, vol. 24(1), pages 35-64, March.
    2. Grant, Ruth W., 2002. "The ethics of incentives: historical origins and contemporary understandings," Economics and Philosophy, Cambridge University Press, vol. 18(1), pages 111-139, April.
    3. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    4. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    5. Luigino Bruni & Robert Sugden, 2013. "Reclaiming Virtue Ethics for Economics," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 141-164, Fall.
    6. Brennan, Geoffrey & Pettit, Philip, 2000. "The hidden economy of esteem," Economics and Philosophy, Cambridge University Press, vol. 16(1), pages 77-98, April.
    7. Bruno S. Frey, 1994. "How Intrinsic Motivation is Crowded out and in," Rationality and Society, , vol. 6(3), pages 334-352, July.
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    Cited by:

    1. Luigino Bruni & Vittorio Pelligra & Tommaso Reggiani & Matteo Rizzolli, 2020. "The Pied Piper: Prizes, Incentives, and Motivation Crowding-in," Journal of Business Ethics, Springer, vol. 166(3), pages 643-658, October.

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    More about this item

    Keywords

    Awards; Incentives; Mutual benefit; Intrinsic motivation;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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