-
Views
-
Cite
Cite
Uri Gneezy, Aldo Rustichini, Pay Enough or Don't Pay at All, The Quarterly Journal of Economics, Volume 115, Issue 3, August 2000, Pages 791–810, https://doi.org/10.1162/003355300554917
- Share Icon Share
Abstract
Economists usually assume that monetary incentives improve performance, and psychologists claim that the opposite may happen. We present and discuss a set of experiments designed to test these contrasting claims.
We found that the effect of monetary compensation on performance was not monotonic. In the treatments in which money was offered, a larger amount yielded a higher performance. However, offering money did not always produce an improvement: subjects who were offered monetary incentives performed more poorly than those who were offered no compensation. Several possible interpretations of the results are discussed.