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

@inproceedings{Gneezy2011WhenAW,
  title={When and Why Incentives (Don't) Work to Modify Behavior},
  author={Uri Gneezy and Stephan Meier and Pedro Rey-Biel},
  year={2011}
}
First we discuss how extrinsic incentives may come into conflict with other motivations. For example, monetary incentives from principals may change how tasks are perceived by agents, with negative effects on behavior. In other cases, incentives might have the desired effects in the short term, but they still weaken intrinsic motivations. To put it in concrete terms, an incentive for a child to learn to read might achieve that goal in the short term, but then be counterproductive as an… CONTINUE READING

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