Trust as a Signal of a Social Norm and the Hidden Costs of Incentive Schemes

S-Tier
Journal: American Economic Review
Year: 2007
Volume: 97
Issue: 3
Pages: 999-1012

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An explanation for motivation crowding-out phenomena is developed in a social preferences framework. Besides selfish and fair or altruistic types, a third type of agent is introduced. These "conformists" have social preferences if they believe that sufficiently many of the others do as well. When there is asymmetric information about the distribution of preferences (the "social norm"), the incentive scheme offered or autonomy granted can reveal a principal's beliefs about that norm. High-powered incentives may crowd out motivation as pessimism about the norm is conveyed. But by choosing fixed wages or granting autonomy, trust in a favorable norm may be signaled. (JEL D64, D82, J41, Z13)

Technical Details

RePEc Handle
repec:aea:aecrev:v:97:y:2007:i:3:p:999-1012
Journal Field
General
Author Count
1
Added to Database
2026-01-29