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Prosocial Motivation and Incentives

Author

Listed:
  • Timothy Besley

    (Department of Economics, London School of Economics, London WC2A 2AE, United Kingdom)

  • Maitreesh Ghatak

    (Department of Economics, London School of Economics, London WC2A 2AE, United Kingdom)

Abstract

This review explores the role of incentives in providing goods and services that have significant social returns not captured in private returns, and where outcomes and performances are not easy to measure. We discuss how the presence of prosocial motivation among agents involved in the provision of these goods and services changes the design of incentives. The review also emphasises how heterogeneous prosocial motivation puts a premium on selection of agents in this context. We also discuss alternative theories of prosocial motivation.

Suggested Citation

  • Timothy Besley & Maitreesh Ghatak, 2018. "Prosocial Motivation and Incentives," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 411-438, August.
    • Handle: RePEc:anr:reveco:v:10:y:2018:p:411-438
    DOI: 10.1146/annurev-economics-063016-103739
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    Keywords

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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