Self Interest, Altruism, Incentives, and Agency Theory

  title={Self Interest, Altruism, Incentives, and Agency Theory},
  author={Michael C. Jensen},
  journal={50+20 Research Paper Series},
  • M. C. Jensen
  • Published 1994
  • Economics, Materials Science
  • 50+20 Research Paper Series
Many people are suspicious of self-interest and incentives and oppose motivating humans through incentives. I analyze the meaning of incentives in the logic of choice and argue that it is inconceivable that purposeful actions are anything other than responses to incentives. Money is not always the best way to motivate people. But where money incentives are required, they are required precisely because people are motivated by things other than money. Self-interest is consistent with altruistic… Expand
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