How to incentive Who? Intra-personal and inter-personal mechanisms
AbstractThe paper focuses on the working of incentives both in parametric and strategic situations. It challenges some of the basic assumptions of the traditional model of economic agent which is usually assumed as self-interested and consequentialist. Psychological researches have stressed the descriptive limitations of that model and pointed out the relevance of other behavioral principles. Intrinsic motivations, reciprocity and trust being the most prominent among them. The paper analyses two different kinds of incentive mechanisms, namely, intra-personal and inter-personal and presents the results of an experiment that emphasize the empirical relevance of the latter. Besides providing a more descriptively adequate picture of interactive agency, such mechanisms have important normative implications that are discussed in the closing section.
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Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200404.
Date of creation: 2004
Date of revision:
incentives; reciprocity; trust; crowding-out; institutional design;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
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