ECO331H1 Lecture Notes - Lecture 11: Motivation, Free Good, Norm (Social)
Document Summary
However, people expend a lot of mental energy without compensation (i. e. crossword puzzles for fun) so extrinsic (monetary) rewards can"t explain everything. Do you help friend of friend move if: Perhaps compensating with lunch more socially acceptable than compensating with money. Usually monetary compensation, but could also be other things like reputation. People like doing crossword puzzles because they are enjoyable. Do extrinsic incentives crowd out intrinsic motivations? a= level of action r=extrinsic reward. Standard theory: disutility from more action/effort but utility from more extrinsic reward m(a,r) is measure of intrinsic motivation. Extrinsic rewards change benefit curve from intrinsic to extrinsic. Signals willingness to help for now and potentially in future, signals how desperate person is for help. Baseline used to see whether changes in lateness caused by other factors. Find lateness increases with fine and remains at high level after fine removed.