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Combining “real effort” with induced effort costs: the ball-catching task

Author

Listed:
  • Simon Gächter

    () (University of Nottingham
    CESifo
    IZA)

  • Lingbo Huang

    () (University of Nottingham)

  • Martin Sefton

    () (University of Nottingham)

Abstract

Abstract We introduce the “ball-catching task”, a novel computerized task, which combines a tangible action (“catching balls”) with induced material cost of effort. The central feature of the ball-catching task is that it allows researchers to manipulate the cost of effort function as well as the production function, which permits quantitative predictions on effort provision. In an experiment with piece-rate incentives we find that the comparative static and the point predictions on effort provision are remarkably accurate. We also present experimental findings from three classic experiments, namely, team production, gift exchange and tournament, using the task. All of the results are closely in line with the stylized facts from experiments using purely induced values. We conclude that the ball-catching task combines the advantages of real effort tasks with the use of induced values, which is useful for theory-testing purposes as well as for applications.

Suggested Citation

  • Simon Gächter & Lingbo Huang & Martin Sefton, 2016. "Combining “real effort” with induced effort costs: the ball-catching task," Experimental Economics, Springer;Economic Science Association, vol. 19(4), pages 687-712, December.
  • Handle: RePEc:kap:expeco:v:19:y:2016:i:4:d:10.1007_s10683-015-9465-9
    DOI: 10.1007/s10683-015-9465-9
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    Citations

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    Cited by:

    1. Barron, Kai & Gravert, Christina, 2018. "Confidence and Career Choices: An Experiment," Working Papers in Economics 715, University of Gothenburg, Department of Economics.
    2. repec:kap:itaxpf:v:25:y:2018:i:1:d:10.1007_s10797-017-9448-1 is not listed on IDEAS
    3. Dutcher, E. Glenn & Salmon, Timothy C. & Saral, Krista J., 2015. "Is "Real" Effort More Real?," MPRA Paper 68394, University Library of Munich, Germany.
    4. Felipe Augusto de Araujo & Erin Carbone & Lynn Conell-Price & Marli W. Dunietz & Ania Jaroszewicz & Rachel Landsman & Diego Lamé & Lise Vesterlund & Stephanie Wang & Alistair J. Wilson, 2015. "The Effect of Incentives on Real Effort: Evidence from the Slider Task," CESifo Working Paper Series 5372, CESifo Group Munich.
    5. Elwyn Davies & Marcel Fafchamps, 2017. "When No Bad Deed Goes Punished: Relational Contracting in Ghana versus the UK," NBER Working Papers 23123, National Bureau of Economic Research, Inc.
    6. Ambroise Decamps & Changxia Ke & Lionel Page, 2018. "How success breeds success," QuBE Working Papers 053, QUT Business School.
    7. Chen, Si & Schildberg-Hörisch, Hannah, 2018. "Looking at the Bright Side: The Motivation Value of Overconfidence," IZA Discussion Papers 11564, Institute for the Study of Labor (IZA).
    8. Dominik Doll & Eberhard Feess & Alwine Mohnen, 2017. "Ability, Team Composition, and Moral Hazard: Evidence from the Laboratory," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(1), pages 49-70, February.
    9. Chen, Si & Schildberg-Hörisch, Hannah, 2018. "Looking at the bright side: The motivation value of overconfidence," DICE Discussion Papers 291, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    10. Barron, Kai & Gravert, Christina, 2018. "Beliefs and actions: How a shift in confidence affects choices," MPRA Paper 84743, University Library of Munich, Germany.
    11. repec:eee:eecrev:v:101:y:2018:i:c:p:528-545 is not listed on IDEAS

    More about this item

    Keywords

    Real effort task; Piece-rate theory; Team incentives; Gift exchange; Tournaments; Online real effort experiments;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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