's prospects are ambiguous, the use of extrinsic, high-powered incentives can lead the agent's beliefs about the project's outcome … alleviated for firms in which agents have strong intrinsic incentives to adhere to firms' goals and missions. In equilibrium …, extrinsic and intrinsic incentives are complementary, and firms that face greater uncertainty invest more in fostering intrinsic …

It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out … also when individuals work together to solve such problems. We do not find a negative impact of incentives on group … performance. As a comparison we ran the same experiment (the Candle Problem) with and without incentives for individuals as well …