The Pied Piper: Prizes, Incentives, and Motivation Crowding-in

Luigino Bruni (), Vittorio Pelligra, Tommaso Reggiani () and Matteo Rizzolli

MUNI ECON Working Papers from Masaryk University

Abstract: In mainstream business and economics, prizes such as the Presidential Medal of Freedom are understood as special types of incentives, with the peculiar features of being awarded in public, and of having largely symbolic value. Informed by both historical considerations and philosophical instances, our study defines fundamental theoretical differences between incentives and prizes. The conceptual factors highlighted by our analytical framework are then tested through a laboratory experiment. The experimental exercise aims to analyze how prizes and incentives impact actual individuals’ behavior differently. Our results show that both incentives (monetary and contingent) and prizes (non-monetary and discretional rewards) boost motivation to perform if awarded publicly, but only prizes crowd-in motivation promoting virtuous attitude.

Keywords: incentives; prizes; awards; crowding-in; meaning; intrinsic motivation (search for similar items in EconPapers)
JEL-codes: B1 D03 J33 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2019-03-26, Revised 2023-02
New Economics Papers: this item is included in nep-exp, nep-hrm and nep-lma
Note: License: CC BY-NC-ND 4.0
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Journal of Business Ethics, 2020, vol. 166, pp. 643-658

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Related works:
Journal Article: The Pied Piper: Prizes, Incentives, and Motivation Crowding-in (2020)
Working Paper: The Pied Piper: Prizes, Incentives, and Motivation Crowding-In (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:mub:wpaper:2019-04

DOI: 10.5817/WP_MUNI_ECON_2019-04

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