Schack

Higher incentives (i.e. payment) do not necessarily lead to higher performance

Thomas Giebe has together with two colleagues from Berlin, Vera Angelova and Radosveta Ivanova-Stenzel, just published a paper about a lab experiment they did: Does a short-term increase in incentives boost performance?

The message of the paper is very simple: higher incentives (i.e. payment) do not necessarily lead to higher performance. This is contrary to standard thinking in economics.

The paper is published Open Access at Economics Letters:
https://doi.org/10.1016/j.econlet.2018.02.004