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The Riddle of Intrinsic Motivation

Andrey Vorchik

MPRA Paper from University Library of Munich, Germany

Abstract: This article is devoted to the phenomenon of intrinsic motivation, to understand which two models are proposed. We study how positive/negative intrinsic motivation to work (experienced utility) affects worker's individual labour supply (model I) and the amount of effort they exert (model II). In model I, we use intrinsic motivation to explain the positive/negative slope and possible bending of the individual labor supply curve. Both models I and II show that positive intrinsic motivation to work (job satisfaction) removes the tradeoff between worker's happiness and efficiency. Thus, from an evolutionary point of view, the very possibility of being intrinsically motivated for any kind of activity can be considered as an adaptation that gives its owner an evolutionary advantage. Provided that probabilities of achieving internal and external goals of the person are positively correlated, higher intrinsic motivation is also contributing to the achievement of the external goal of survival in the environment. However, as follows from model II, in order to persist in the long term, intrinsic motivation must not only be positive, but also high enough so that it is not crwoded out by extrinsic motivation in the course of cultural selection. The paper explains the mechanisms behind crowding out and the reverse process of crowding in, as well as describes methods of regulating these processes. The negative effects of crowding out on the efficiency labour markets and the economy as a whole are discussed, as well as practical implications for the education system.

Keywords: rationalization theory by Max Weber; extrinsic and intrinsic motivation; experienced utility theory by Daniel Kahneman; Bernoulli utility function; emotions; cultural selection; self-fulfilling prophecy (search for similar items in EconPapers)
JEL-codes: B52 D03 D61 J20 M52 (search for similar items in EconPapers)
Date: 2026-03-26
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