Financial incentives and cognitive abilities: evidence from a forecasting task with varying cognitive load

I examine how financial incentives interact with intrinsic motivation and especially cognitive abilities in explaining heterogeneity in performance. Using a forecasting task with varying cognitive load, I show that the effectiveness of high-powered financial incentives as a stimulator of economic performance can be moderated by cognitive abilities in a causal fashion. Identifying the causality of cognitive abilities is a prerequisite for studying their interaction with financial and intrinsic incentives in a unifying framework, with implications for the design of efficient incentive schemes.

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Year of publication:	2007
Authors:	Rydval, Ondřej
Publisher:	Jena : Friedrich Schiller University Jena and Max Planck Institute of Economics
Subject:	Kognition \| Leistungsmotivation \| Leistungsanreiz \| Ökonomischer Anreiz \| Test \| Financial incentives \| Cognitive ability \| Heterogeneity \| Performance \| Experiment

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Series:	Jena Economic Research Papers ; 2007,040
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	547113951 [GVK] hdl:10419/25604 [Handle]
Classification:	C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; C91 - Laboratory, Individual Behavior ; D83 - Search, Learning, Information and Knowledge
Source:	EconStor

Persistent link: https://www.econbiz.de/10010276433