EconPapers    
Economics at your fingertips  
 

Pride and Prejudice: The Human Side of Incentive Theory

Tore Ellingsen () and Magnus Johannesson ()

American Economic Review, 2008, vol. 98, issue 3, 990-1008

Abstract: Desire for social esteem is a source of prosocial behavior. We develop a model in which actors' utility of esteem depends on the audience. In a principal agent setting, we show that the model can account for motivational crowding out. Control systems and pecuniary incentives erode morale by signaling to the agent that the principal is not worth impressing. The model also offers an explanation for why agents are motivated by unconditionally high pay and by mission-oriented principals.

JEL-codes: D82 (search for similar items in EconPapers)
Date: 2008
Note: DOI: 10.1257/aer.98.3.990
References: Add references at CitEc
Citations: View citations in EconPapers (321) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.98.3.990 (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Pride and Prejudice: The Human Side of Incentive Theory (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:98:y:2008:i:3:p:990-1008

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2019-10-13
Handle: RePEc:aea:aecrev:v:98:y:2008:i:3:p:990-1008