Effort for Payment

  title={Effort for Payment},
  author={James E. Heyman and Dan Ariely},
  journal={Psychological Science},
  pages={787 - 793}
The standard model of labor is one in which individuals trade their time and energy in return for monetary rewards. Building on Fiske's relational theory (1992), we propose that there are two types of markets that determine relationships between effort and payment: monetary and social. We hypothesize that monetary markets are highly sensitive to the magnitude of compensation, whereas social markets are not. This perspective can shed light on the well-established observation that people… Expand

Figures, Tables, and Topics from this paper

Motivating effort: a theoretical synthesis of the self-sufficiency and two-market theories.
The results suggest that the labour market framework of monetary versus social incentive is not mutually exhaustive of all types of incentive, and the combinational effect created by introducing both labour markets may be the best motivator. Expand
The Labor Supply of Fixed-Wage Workers: Estimates from a Real Effort Experiment
Fixed-wage workers comprise the bulk of the labor force and yet little is known about how they respond to wage changes. Given recent interest in theories of reciprocity and intrinsic motivation andExpand
Social Norms and the Price of Zero
The standard economic model assumes that demand is weakly decreasing in price. While empirical evidence shows that this is true for most price levels, it might not hold for the price of zero, whereExpand
Trading Effort for Money
Services involve cocreation, such that businesses often treat consumers as partial employees to help boost productivity. However, not all consumers are intrinsically motivated to engage in the effortExpand
Monetary Incentives, Feedback, and Recognition—Complements or Substitutes? Evidence from a Field Experiment in a Retail Services Company
ABSTRACT: This study investigates the performance effects of the combined use of three reinforcers, or incentive motivators, commonly used by companies: monetary incentives, feedback, andExpand
Monetary and Non-monetary Gift Exchange
We study the role of reciprocity in a labour market field experiment. Recently, many experiments have been conducted to test the extent to which cash and non-monetary gifts affect workers’Expand
There is nothing permanent except change—analyzing individual price dynamics in “pay-what-you-want” situations
This study is examines the dynamics in prices paid in “pay-what-you-want” situations over multiple customer–seller transactions on an individual customer level. The analysis of potential dynamism inExpand
Return on Reward
Return on reward, i.e. the average economic performance per employee, which a company generates based on its average total labor expenses is a topic that seems to have received surprisingly littleExpand
Essays in development economics
This thesis contains three chapters that fall under the broad banner of development economics, with a particular focus on the study of mechanisms and strategies that improve public goods delivery. Expand
Is sharing up for sale? Monetary exchanges in the sharing economy
Past research has neglected the question of whether different exchange mechanisms and consumption or service contexts (CSCs) in the sharing economy may lead to different outcomes. The authors developExpand


Pay Enough or Don't Pay at All
Economists usually assume that monetary incentives improve performance, and psychologists claim that the opposite may happen. We present and discuss a set of experiments designed to test theseExpand
Psychological Foundations of Incentives
During the last two decades economists have made much progress in understanding incentives, contracts and organisations. Yet, they constrained their attention to a very narrow and empiricallyExpand
Incorporating Fairness into Game Theory and Economics
People like to help those who are helping them and to hurt those who are hurting them. Outcomes rejecting such motivations are called fairness equilibria. Outcomes are mutual-max when each personExpand
A Fine is a Price
The deterrence hypothesis predicts that the introduction of a penalty that leaves everything else unchanged will reduce the occurrence of the behavior subject to the fine. We present the result of aExpand
The four elementary forms of sociality: framework for a unified theory of social relations.
  • A. Fiske
  • Psychology, Medicine
  • Psychological review
  • 1992
The motivation, planning, production,production, comprehension, coordination, and evaluation of human social life may be based largely on combinations of 4 psychological models: communal sharing, authority ranking, equality matching, market pricing and market pricing. Expand
The Effects of Brand Relationship Norms on Consumer Attitudes and Behavior
The key premise underlying this work is that when consumers form relationships with brands they use norms of interpersonal relationships as a guide in their brand assessments. Two relationship typesExpand
Effects of Externally Mediated Rewards on Intrinsic Motivation.
Two laboratory experiments and one field experiment were conducted to investigate the effects of external rewards on intrinsic motivation to perform an activity. In each experiment, subjects wereExpand
The Difference between Communal and Exchange Relationships: What it is and is Not
Replying to Batson (this issue), who argues that the difference between communal and exchange relationships is less than might be imagined, the authors review the communal/exchange distinction,Expand
Cognitive consequences of forced compliance.
The theory behind this experiment is that the person who is forced to improvise a speech convinces himself, and some evidence is presented, which is not altogether conclusive, in support of this explanation. Expand
Feeling "holier than thou": are self-serving assessments produced by errors in self- or social prediction?
Two final studies suggest this divergence in accuracy arises, in part, because people are unwilling to consult population base rates when predicting their own behavior but use this diagnostic information more readily when predicting others'. Expand