Bénabou, Roland; Tirole, Jean - C.E.P.R. Discussion Papers - 2000
offering payments or rewards, delegating a task, or giving encouragement. We show that extrinsic rewards may have hidden costs … - as stressed by psychologists - in that they undermine intrinsic motivation. As a result, they may be only weak … motivation, while offers of help may create a dependence. More generally, we identify when the hidden costs of rewards are a myth …