An instrument that could turn crowding-out into crowding-in

Antoine Beretti, Charles Figuieres and Gilles Grolleau ()

Working Papers from LAMETA, Universtiy of Montpellier

Abstract: Using a simple decision-theoretic approach, we formalize how agents with different kinds of intrinsic motivations react to the introduction of monetary incentives. We contend that empirical results supporting the existence of a crowding-out effect in various contexts hide a more complex reality. We also propose a new policy instrument which taps into agents' heterogeneity regarding intrinsic motivations in order to turn a situation subject to crowding-out into a crowding-in outcome. This instrument uses a self-selection mechanism to match adequate monetary incentives with individuals' types regarding intrinsic motivations.

Pages: 14 pages
Date: 2015-01, Revised 2015-01
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: An Instrument that Could Turn Crowding-out into Crowding-in (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:lam:wpaper:15-01

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