Intrinsic and Extrinsic Motivation - Princeton University

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 .

stop smoking, or wear seat belts, either offering or not offering rewards. Consistently, individ-uals in “reward” treatments showed better compliance at the beginning, but worse compliance in the long run than those in the “no-reward” or “untreated controls” groups. Taken together,

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