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Monetary Incentives: Usually Neither Necessary Nor Sufficient?

Author

Listed:
  • Andreas Ortmann
  • Ralph Hertwig

Abstract

Read (2005), in The Journal of Economic Methodology, took our target article in Behavioral and Brain Sciences (Hertwig & Ortmann 2001) as one point of departure to question the usefulness of monetary incentives for experimental work. In making his case, he misrepresents our analysis, and continues the unfortunate ritual of opportunistic sampling of evidence. As in our target article, we call for an empirical analysis of the impact of monetary incentives.

Suggested Citation

  • Andreas Ortmann & Ralph Hertwig, 2006. "Monetary Incentives: Usually Neither Necessary Nor Sufficient?," CERGE-EI Working Papers wp307, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
  • Handle: RePEc:cer:papers:wp307
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    File URL: http://www.cerge-ei.cz/pdf/wp/Wp307.pdf
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    References listed on IDEAS

    as
    1. Andreas Ortmann & Ralph Hertwig, 2002. "The Costs of Deception: Evidence from Psychology," Experimental Economics, Springer;Economic Science Association, vol. 5(2), pages 111-131, October.
    2. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," American Economic Review, American Economic Association, vol. 92(4), pages 1218-1221, September.
    3. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    4. Daniel Read, 2005. "Monetary incentives, what are they good for?," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(2), pages 265-276.
    5. John A. List, 2004. "Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace," Econometrica, Econometric Society, vol. 72(2), pages 615-625, March.
    6. Rydval, Ondrej & Ortmann, Andreas, 2004. "How financial incentives and cognitive abilities affect task performance in laboratory settings: an illustration," Economics Letters, Elsevier, vol. 85(3), pages 315-320, December.
    7. Guala,Francesco, 2005. "The Methodology of Experimental Economics," Cambridge Books, Cambridge University Press, number 9780521618618.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Ottone, Stefania & Ortona, Guido & Ponzano, Ferruccio & Scacciati, Francesco, 2010. "Some differences in revealed behaviour under different inquiry methods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(5), pages 546-553, October.
    3. Sauer, Matthias, 2014. "Cue-recognition effects in the assessment of movie trailers," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 376-382.
    4. Prokosheva, Sasha, 2016. "Comparing decisions under compound risk and ambiguity: The importance of cognitive skills," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 64(C), pages 94-105.
    5. Sasha Prokosheva, 2014. "Comparing Decisions under Compound Risk and Ambiguity: The Importance of Cognitive Skills," CERGE-EI Working Papers wp525, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Daniela Di Cagno & Werner Güth & Giacomo Sillari, 2015. "The better toolbox: Experimental Methodology in Economics and Psychology," Working Papers CESARE 2/2015, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    7. Wolfgang Gaissmaier & Kevin E. Tiede & Rocio Garcia-Retamero, 2023. "The Lure of Beauty: People Select Representations of Statistical Information Largely Based on Attractiveness, Not Comprehensibility," Medical Decision Making, , vol. 43(7-8), pages 774-788, October.

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    More about this item

    Keywords

    Experimental practices; monetary incentives; financial incentives; rhetorical cactics.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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