A price is a signal On intrinsic motivation and crowding-out

@inproceedings{Bolle2008API,
  title={A price is a signal On intrinsic motivation and crowding-out},
  author={Friedel Bolle and Philipp Erik Otto},
  year={2008}
}
If a previously unpaid activity (donating blood) is paid, then we often observe that this activity is reduced. In this paper, it is hypothesized that the price offered is taken as a proxy for the “value” of the activity. Depending on how the actor valued the activity previously, crowding-out or crowding-in is implied, an effect with or without persistence after abandoning the payment. The model can be adapted to a number of similar situations, including such where a high price signals low… CONTINUE READING

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