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Wiley InterScience | |||
  Review of Economic StudiesVolume 70 Issue 3, Pages 489 - 520 Published Online: 3 Jul 2003 © 2010 The Review of Economic Studies Limited
Abstract | References | Full Text: HTML, PDF (Size: 221K) | Related Articles | Citation Tracking  Intrinsic and Extrinsic Motivation Copyright The Review of Economic Studies Limited, 2003 ABSTRACTA central tenet of economics is that individuals respond to incentives. For psychologists and sociologists, in contrast, rewards and punishments are often counterproductive, because they undermine "intrinsic motivation". We reconcile these two views, showing how performance incentives offered by an informed principal (manager, teacher, parent) can adversely impact an agent's (worker, child) perception of the task, or of his own abilities. Incentives are then only weak reinforcers in the short run, and negative reinforcers in the long run. We also study the effects of empowerment, help and excuses on motivation, as well as situations of ego bashing reflecting a battle for dominance within a relationship. Received on February 2000 and accepted for publication on January 2003 | 
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