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Monetary rewards and self-selection in design crowdsourcing contests: Managing participation, contribution appropriateness, and winning trade-offs

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  • Patel, Chirag
  • Ahmad Husairi, Mariyani
  • Haon, Christophe
  • Oberoi, Poonam

Abstract

Does the size of monetary rewards have differential effects on a crowdsourcing contest member's likelihood of (i) participation (i.e., submitting contribution(s) to the contest), (ii) making appropriate contribution(s) that are accepted for inclusion in the contest, and (iii) winning the contest? In this paper, we develop a theoretical framework to unravel the role of extrinsic motivation through monetary rewards in influencing an individual's performance outcomes. We hypothesize that the size of monetary rewards increases the probability of participation but reduces the likelihood that individual participants will submit appropriate contribution(s) or win the contest. These trade-off effects of monetary rewards can be mitigated significantly through participation of individuals with skills matching the contest requirements and having past experience in crowdsourcing contests. We obtain support for our hypotheses using a unique dataset of 93,677 individual-contest dyads consisting of 50,227 individual contest members who registered for 183 contests on eYeka, a design crowdsourcing platform during the period of 2007–2012. The results imply that increasing the size of monetary rewards needs to be complemented by increasing the participation of individuals with skills match and past experience in order to mitigate the trade-off effects.

Suggested Citation

  • Patel, Chirag & Ahmad Husairi, Mariyani & Haon, Christophe & Oberoi, Poonam, 2023. "Monetary rewards and self-selection in design crowdsourcing contests: Managing participation, contribution appropriateness, and winning trade-offs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:tefoso:v:191:y:2023:i:c:s0040162523001324
    DOI: 10.1016/j.techfore.2023.122447
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