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Gneezy , Uri; Meier , Stephan; Rey Biel, Pedro
When and why incentives (don't) work to modify behavior
10/2011

First we discuss how extrinsic incentives may come into conflict with other motivations. For example, monetary incentives from principals may change
how tasks are perceived by agents, with negative effects on behavior. In other cases, incentives might have the desired effects in the short term, but
they still weaken intrinsic motivations. To put it in concrete terms, an incentive for a child to learn to read might achieve that goal in the short term,
but then be counterproductive as an incentive for students to enjoy reading and seek it out over their lifetimes. Next we examine the research literature
on three important examples in which monetary incentives have been used in a nonemployment context to foster the desired behavior: education;
increasing contributions to public goods; and helping people change their lifestyles, particularly with regard to smoking and exercise. The conclusion
sums up some lessons on when extrinsic incentives are more or less likely to alter such behaviors in the desired directions.
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When and why incentives (don't) work to modify behavior
Gneezy , Uri; Meier , Stephan; Rey Biel, Pedro
Journal of Economics Perspectives
Vol. 25,
nº 4,
10/2011,
p. 191
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210
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