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Quantity, Quality, and Originality: The Effects of Incentives on Creativity

Author

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  • Katharina Laske

    (University of Cologne)

  • Marina Schroeder

    (University of Cologne)

Abstract

We introduce a novel experimental design in which creativity is incentivized and measured along three dimensions: quantity, quality and originality of ideas. We implement piece rate incentives for quantity alone, quantity in combination with quality and quantity in combination with originality and compare the results to a baseline with a fixed wage. We find that incentives significantly affect the quantity and average quality of ideas, but not the average originality. Incentives for both quantity and originality perform best in fostering innovative ideas.

Suggested Citation

  • Katharina Laske & Marina Schroeder, 2016. "Quantity, Quality, and Originality: The Effects of Incentives on Creativity," Cologne Graduate School Working Paper Series 07-01, Cologne Graduate School in Management, Economics and Social Sciences.
  • Handle: RePEc:cgr:cgsser:07-01
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    References listed on IDEAS

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    Cited by:

    1. Englmaier, Florian & Grimm, Stefan & Schindler, David & Schudy, Simeon, 2018. "The Effect of Incentives in Non-Routine Analytical Team Tasks - Evidence From a Field Experiment," Rationality and Competition Discussion Paper Series 71, CRC TRR 190 Rationality and Competition.
    2. Benslimane, I. & Crosetto, P. & Magni-Berton, R. & Varaine, S., 2020. "Intellectual property reform in the laboratory," Working Papers 2020-06, Grenoble Applied Economics Laboratory (GAEL).
    3. Reggiani, Tommaso G. & Rilke, Rainer Michael, 2020. "When Too Good Is Too Much: Social Incentives and Job Selection," IZA Discussion Papers 12905, Institute of Labor Economics (IZA).
    4. Grözinger, Nicola & Irlenbusch, Bernd & Laske, Katharina & Schröder, Marina, 2020. "Innovation and communication media in virtual teams – An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 201-218.
    5. Charness, Gary & Gneezy, Uri & Henderson, Austin, 2018. "Experimental methods: Measuring effort in economics experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 74-87.

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    More about this item

    Keywords

    creativity; multitasking; laboratory experiment; real-effort; incentives;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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