search query: @author Falk, A. / total: 6
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| Author: | Fehr, E. Falk, A. |
| Title: | Psychological foundations of incentives |
| Journal: | European Economic Review
2002 : APR, VOL. 46:4-5, p. 687-724 |
| Index terms: | Incentives Contracts Sociology Psychology |
| Language: | eng |
| Abstract: | During the last two decades economists have made much progress in understanding incentives, contracts and organizations, with attention to a very narrow and empirically questionable view of human motivation. The purpose of this paper (as a J.Schumpeter lecture) is to show that this narrow view of human motivation may severely limit understanding the determinants and effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like the desire to reciprocate or the desire to avoid social disapproval. It is shown in the paper that monetary incentives may backfire and reduce the performance of agents or their compliance with rules. In addition, these motives may generate very powerful incentives themselves. |
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