Extrinsic incentives play a key role in motivating behavior. However, conflicting findings have been observed with respect to the effectiveness of various extrinsic incentives (e.g., a cash reward vs. a donation to charity) in motivation. We propose a novel framework that accounts for these...

In Japan's hometown tax donation system, people can donate to municipalities where they are not resident and in return receive reciprocal gifts from the local governments of those municipalities. A large part of the donated amount can be deducted from their income and residence taxes. This study...