Pride and Prejudice: The Human Side of Incentive Theory

S-Tier
Journal: American Economic Review
Year: 2008
Volume: 98
Issue: 3
Pages: 990-1008

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Desire for social esteem is a source of prosocial behavior. We develop a model in which actors' utility of esteem depends on the audience. In a principal agent setting, we show that the model can account for motivational crowding out. Control systems and pecuniary incentives erode morale by signaling to the agent that the principal is not worth impressing. The model also offers an explanation for why agents are motivated by unconditionally high pay and by mission-oriented principals.

Technical Details

RePEc Handle
repec:aea:aecrev:v:98:y:2008:i:3:p:990-1008
Journal Field
General
Author Count
2
Added to Database
2026-01-25