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Incentives and Prosocial Discomfort: A Laboratory Experiment

Author

Listed:
  • Grace E. Steward
  • Mario Macis
  • Nicola Lacetera
  • Jeffrey P. Kahn
  • Vikram S. Chib

Abstract

We conducted a within-subject laboratory experiment in which participants decided whether to experience physical discomfort for charity, with or without additional personal compensation. Acceptance decreased with greater discomfort and increased with both larger charitable donations and personal payments. We show that private monetary incentives and prosocial benefits interact in a less-than-additive way: personal compensation raises participation but attenuates the marginal impact of charitable donations, making the combined impact of private and social rewards smaller than the sum of their separate effects. We also find suggestive evidence that the sequencing of compensated and uncompensated choices may change the responsiveness to charitable benefits. Overall, our results indicate that context, especially the presence (and timing) of private rewards, can affect the relationship between incentives and prosocial behavior.

Suggested Citation

  • Grace E. Steward & Mario Macis & Nicola Lacetera & Jeffrey P. Kahn & Vikram S. Chib, 2026. "Incentives and Prosocial Discomfort: A Laboratory Experiment," CESifo Working Paper Series 12433, CESifo.
    • Handle: RePEc:ces:ceswps:_12433
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    References listed on IDEAS

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    1. Nicola Lacetera & Mario Macis & Robert Slonim, 2012. "Will There Be Blood? Incentives and Displacement Effects in Pro-social Behavior," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 186-223, February.
    2. Lacetera, Nicola & Macis, Mario, 2010. "Do all material incentives for pro-social activities backfire? The response to cash and non-cash incentives for blood donations," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 738-748, August.
    3. Bruno S. Frey & Reto Jegen, 2001. "Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
    4. Newman, George E. & Jeremy Shen, Y., 2012. "The counterintuitive effects of thank-you gifts on charitable giving," Journal of Economic Psychology, Elsevier, vol. 33(5), pages 973-983.
    5. Alvin E. Roth, 2007. "Repugnance as a Constraint on Markets," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 37-58, Summer.
    6. Matthew Chao, 2018. "Intentions-Based Reciprocity to Monetary and Non-Monetary Gifts," Games, MDPI, vol. 9(4), pages 1-18, September.
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    Cited by:

    1. Lieke Voorintholt & Annalisa Tassi, 2026. "The effects of monetary compensation on paid volunteers: Quasi-experimental evidence from Germany," IAAEU Discussion Papers 202605, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    2. Annalisa Tassi & Lieke Voorintholt, 2026. "The effects of monetary compensation on paid volunteers: Quasi-experimental evidence from Germany," FBK-IRVAPP Working Papers 2026-03, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.

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    More about this item

    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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