Tertium Datur: Pricing, Regulating and Intrinsic Motivation

Bruno S. Frey ()

Kyklos, 1992, vol. 45, issue 2, pages 161-84

Abstract: Beyond prices and regulations, a third motivation influences human behavior: intrinsic motivation. Under identifiable conditions, rational individuals replace their intrinsic by extrinsic motivation when prices and regulations are imposed from the outside ("crowding-out effect"). Conversely, policy instruments that acknowledge intrinsic motivation and extend actors' self-determination "crowd-in" intrinsic motivation. Empirical studies support these psychological effects. Copyright 1992 by WWZ and Helbing & Lichtenhahn Verlag AG

Date: 1992
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