Large Stakes and Big Mistakes
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ID: 306427
2009
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Abstract
Workers in a wide variety of jobs are paid based on performance, which is commonly seen as enhancing effort and productivity relative to non-contingent pay schemes. However, psychological research suggests that excessive rewards can, in some cases, result in a decline in performance. To test whether very high monetary rewards can decrease performance, we conducted a set of experiments in the U.S. and in India in which subjects worked on different tasks and received performance-contingent payments that varied in amount from small to very large relative to their typical levels of pay. With some important exceptions, very high reward levels had a detrimental effect on performance.
| Reference Key |
openalex_W2108561834
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|---|---|
| Authors | Dan Ariely, Uri Gneezy, George Loewenstein, Nina Mažar |
| Journal | The Review of Economic Studies |
| Year | 2009 |
| DOI |
10.1111/j.1467-937x.2009.00534.x
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| URL | |
| Keywords | Keywords not found |
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