The Effect of Incentives in Non-Routine Analytical Teams Tasks - Evidence from a Field Experiment
51 Pages Posted: 19 Apr 2018
Date Written: February 21, 2018
Despite the prevalence of non-routine analytical team tasks in modern economies, little is known about how incentives influence performance in these tasks. In a field experiment with more than 3000 participants, we document a positive effect of bonus incentives on the probability of completion of such a task. Bonus incentives increase performance due to the reward rather than the reference point (performance threshold) they provide. The framing of bonuses (as gains or losses) plays a minor role. Incentives improve performance also in an additional sample of presumably less motivated workers. However, incentives reduce these workers’ willingness to “explore” original solutions.
Keywords: team work, bonus, incentives, loss, gain, non-routine, exploration
JEL Classification: C920, C930, J330, D030, M520
Suggested Citation: Suggested Citation