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The incentive effects of performance requirements – A real effort experiment

Agne Kajackaite and Peter Werner

Journal of Economic Psychology, 2015, vol. 49, issue C, 84-94

Abstract: We test if control exerted through the implementation of a minimum performance requirement has a counterproductive effect on output in a real effort experiment. To identify whether negative responses to control are related to the characteristics of the labor environment, we conduct treatments that induce different degrees of intrinsic motivation among experimental workers and also differ in the possibility for reciprocal reactions. Overall, the minimum performance requirement does not lead to a significant change in the average output level. However, our data indicate undesired effects of control in the dynamics of controlled agents’ working performance.

Keywords: Performance requirement; Control costs; Reciprocity; Intrinsic motivation (search for similar items in EconPapers)
JEL-codes: C91 D03 J33 M54 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.joep.2015.03.007

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