Transcription of Intrinsic and Extrinsic Motivation - princeton.edu
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Intrinsic and Extrinsic Motivation - princeton.edu
Review of economic Studies (2003) 70, 489 520 0034-6527/03/00190489$ c 2003 The Review of economic Studies Limited Intrinsic and Extrinsic Motivation ROLAND BE NABOU. princeton University and Institute for Advanced Study and JEAN TIROLE. IDEI (Universite de Toulouse I), CERAS and MIT. First version received February 2000; final version accepted January 2003 (Eds.). A central tenet of economics is that individuals respond to incentives. For psychologists and sociologists, in contrast, rewards and punishments are often counterproductive, because they undermine Intrinsic Motivation . We reconcile these two views, showing how performance incentives offered by an informed principal (manager, teacher, parent) can adversely impact an agent's (worker, child) perception of the task, or of his own abilities.
490 REVIEW OF ECONOMIC STUDIES Indeed, a substantial body of experimental and field evidence indicates that extrinsic moti-vation (contingent rewards) can …
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