Free to Choose: Testing the Pure Motivation Effect of Autonomous Choice

Abstract

We conduct an experimental test of the long-standing conjecture that autonomy increases motivation and task performance. Subjects face a menu consisting of two projects: risky and safe. The probability that the risky project succeeds depends on the subject's effort. In one treatment, subjects choose a project from the menu; in the other treatment, a project is assigned to them. Using a difference-in-differences approach which controls for selection into preferred projects, we show that autonomy (the act of choosing) can have a significant pure motivation effect on effort. Interesting patterns in the data, including how the pure motivation effect depends on properties of the (unchosen) safe project, are consistent with subjects experiencing a feeling of regret when they choose a risky project that fails.

Keywords: autonomy, diversity of choice, regret

JEL Classification: C91, D9, M1