A Behavioral Economics Perspective on the Overjustification Effect: Crowding-In and Crowding-Out of Intrinsic Motivation
Series
Oxford library of psychology
ISBN
978-0199794911
Type
book section
Date Issued
2014
Author(s)
Abstract
In the last two decades, economic motivation research has undergone a paradigm shift when it comes to the effect of incentive schemes on individual performance and motivation. Inspired by self-determination theory, a new branch in economics evolved called behavioral economics. Especially by evidencing the negative effect of "pay-for-performance" on intrinsic motivation, called the "crowding-out" or "overjustification" effect, it challenges the economic paradigm of the relative price-effect and ist inherent belief in incentives as universal remedy for motivation and individual performance. This article reviews the findings of behavioral economics on motivation. Drawing on these results we discuss which institutional conditions strengthen rather than weaken intrinsic motivation. We demonstrate that fairness,
participation, market-driven wages, and normatively affected decision-making contexts have a positive effect on intrinsic Motivation.
participation, market-driven wages, and normatively affected decision-making contexts have a positive effect on intrinsic Motivation.
Language
English
Keywords
self-determination theory
work motivation
HSG Classification
contribution to scientific community
Refereed
No
Book title
Oxford Handbook of Work Engagement, Motivation, and Self-Determination Theory
Publisher
Oxford University Press
Publisher place
Oxford
Start page
72
End page
84
Pages
13
Subject(s)
Division(s)
Eprints ID
231942