An Experimental Investigation on Performance Under Individual, Team, and Mix Incentive Schemes

It is a well-known fact that people respond to incentives; however, people respond differently on how these incentives are presented. This study aims to verify whether there are significant differences among the individual, team, and mix incentive strategies through an experimental setup. The Student's t-test was used to verify the significant mean differences on the students' performance under different incentive strategies. The results showed that there were significant mean differences on the students' performance among the three treatment groups in the study, with the mix incentives having the highest mean output level. An Ordinary Least Square regression analysis was conducted to identify factors that affect an individual's performance. Results of the estimation reveal that the mix incentive strategy has a significant effect on the performance and were consistent to the results of the t-test. Other factors that significantly affect the student's performance include the years of education, the perceived interest, and the perceived difficulty to the task. The study provided statistical evidence showing that, among the three incentive strategies, the mix incentive strategy provides the highest incentive to improve a student's performance under experimental setup