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Empirical research suggests that - rather than improving incentives - exerting control can reduce workers' performance by eroding motivation. The present paper shows that intention-based reciprocity can cause such motivational crowding-out if individuals differ in their propensity for...
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This paper makes use of two field experiments to explore individual effort responses to gifts. We extend the literature … by looking at nonfinancial gifts and gifts that combine financial and nonfinancial elements with or without adding a … “personal touch.” We find that non-pecuniary gifts that signal worker appreciation induce reciprocity. Most importantly, we find …
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We study the effect of monetary incentives on effort in a prosocial task: writing letters encouraging voter turnout. Volunteers are randomized to receive no incentive, unconditional upfront payment, payment conditional on completing the task, or to have a choice between the two payment schemes....
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The information asymmetries inherent in credence goods have typically led economists to conclude these markets require well-defined quality standards and third-party verification that producers are meeting those standards. Nonetheless, many producers of credence goods appear to be opting out of...
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