Testing the Effect of Incentives on Effort Intensity Using Real-Effort Tasks

53 Pages Posted: 17 Aug 2018

See all articles by Willie Choi

Willie Choi

University of Wisconsin - Madison

Jeffrey Clark

Indiana University; University of Pittsburgh; Nanyang Technological University

Adam Presslee

University of Waterloo - School of Accounting and Finance

Date Written: August 17, 2018

Abstract

We identify seven factors researchers should consider when designing a real-effort task to capture effort intensity (i.e., an effort-intensive task): (1) intrinsic motivation; (2) task-specific skill; (3) task strategies beyond exerting effort; (4) fine unit of performance; (5) within-round task experience across participants; (6) performance trends over time; and (7) task difficulty across rounds. With these factors in mind, we design an experiment to test for incentive effects on effort and performance using three effort-intensive tasks: the decode task, the letter search task, and the slider task. Contrary to our expectation, we find significant variation across tasks in our ability to detect incentive effects and limit the effects of the seven factors above, with the strongest evidence coming from the slider task. Our list of factors helps researchers design effort-intensive tasks that allow them to conduct a more effective test of theory. At the same time, our results highlight the difficulty in effectively designing effort-intensive tasks.

Keywords: Effort intensity, performance, real-effort tasks

Suggested Citation

Choi, Jongwoon and Clark, Jeffrey and Presslee, Adam, Testing the Effect of Incentives on Effort Intensity Using Real-Effort Tasks (August 17, 2018). AAA 2019 Management Accounting Section (MAS) Meeting, Available at SSRN: https://ssrn.com/abstract=3233162

Jongwoon Choi

University of Wisconsin - Madison ( email )

Wisconsin School of Business
975 University Avenue
Madison, WI 53706
United States

Jeffrey Clark

Indiana University ( email )

1309 E 10th Street, Hodge Hall 4100
Bloomington, IN 47405
United States

University of Pittsburgh ( email )

Pittsburgh, PA 15260
United States

Nanyang Technological University ( email )

Nanyang Business School
Singapore, 639798
Singapore

Adam Presslee (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

Waterloo, ON
Canada

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