Work for Image and Work for Pay
AbstractStandard economic models with complete information predict a positive, monotonic relationship between pay and performance. This prediction does not always hold in experimental tests: offering a small payment may result in lower performance than not offering any payment. We test experimentally two main explanations that have been put forward for this result: the "incomplete contract" hypothesis views the payment rule as a signal given to subjects on purpose of the activity. The "informed principal" hypothesis views it as a signal concerning the characteristics of the agent or of the task. The incomplete contract view appears to offer the best overall explanation for our results. We also find that high-powered monetary incentives do not "crowd out" intrinsic motivation, but may elicit "too much" effort when intrinsic motivation is very high.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 11-252.
Date of creation: 10 Sep 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-28 (All new papers)
- NEP-CBE-2011-11-28 (Cognitive & Behavioural Economics)
- NEP-CTA-2011-11-28 (Contract Theory & Applications)
- NEP-EXP-2011-11-28 (Experimental Economics)
- NEP-HRM-2011-11-28 (Human Capital & Human Resource Management)
- NEP-LMA-2011-11-28 (Labor Markets - Supply, Demand, & Wages)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gill, David & Prowse, Victoria, 2012.
"Cognitive ability and learning to play equilibrium: A level-k analysis,"
38317, University Library of Munich, Germany, revised 23 Apr 2012.
- David Gill & Victoria Prowse, 2013. "Cognitive ability and learning to play equilibrium: A level-k analysis," Economics Series Working Papers 641, University of Oxford, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.