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Erkal, Nisvan, Gangadharan, Lata and Koh, Boon Han 
ORCID: https://orcid.org/0000-0002-4893-1432
(2018)
Monetary and non-monetary incentives in real-effort tournaments.
European Economic Review, 101.
pp. 528-545.
ISSN 0014-2921
Abstract
Results from laboratory experiments using real-effort tasks provide mixed evidence on the relationship between monetary incentives and effort provision. To examine this issue, we design three experiments where subjects participate in two-player real-effort tournaments with two prizes. Experiment 1 shows that subjects exert high effort even if there are no monetary incentives, suggesting that non-monetary incentives are contributing to their effort choices. Moreover, increasing monetary incentives does not result in higher effort provision. Experiment 2 shows that the impact of non-monetary incentives can be reduced by providing subjects with the option of leaving the laboratory early, using an incentivized timeout button, or working on an incentivized alternative activity. Experiment 3 revisits the relationship between monetary incentives and effort provision using the insights from Experiment 2. Using a design with an incentivized alternative activity, we show that participants increase effort in response to monetary incentives. Taken together, the findings from the three experiments suggest that results from real-effort tasks require a careful evaluation and interpretation of the motivations underlying the observed performance.
| Item Type: | Article |
|---|---|
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| UEA Research Groups: | Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Groups > Economic Theory |
| Related URLs: | |
| Depositing User: | LivePure Connector |
| Date Deposited: | 16 Sep 2019 12:30 |
| Last Modified: | 20 Apr 2023 08:34 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/72246 |
| DOI: | 10.1016/j.euroecorev.2017.10.021 |
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