When and Why Incentives ( Don ’ t ) Work to Modify Behavior

@inproceedings{Meier2011WhenAW,
  title={When and Why Incentives ( Don ’ t ) Work to Modify Behavior},
  author={Stephan Meier and Pedro Rey-Biel},
  year={2011}
}
E conomists often emphasize that “incentives matter.” The basic “law of behavior” is that higher incentives will lead to more effort and higher performance. Employers, for example, often use extrinsic incentives to motivate their employees. In recent years, the use of incentives in behavioral interventions has become more popular. Should students be provided with fi nancial incentives for increased school attendance, for reading, or for better grades? Will fi nancial incentives encourage higher… CONTINUE READING

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