The standard principal agent model considers monetary incentives only. It is assumed that money is more efficient than …) - though almost omnipresent - have so far escaped the attention of economists. They present extrinsic, non-monetary incentives … differences between monetary incentives and awards: in general, awards are cheap, lead to interpersonal relationships, are not …

and conducted a laboratory experiment to test this proposition. In the field experiment, taxpayers with a history of being … compliant are more likely to make a promise. Similarly, the laboratory experiment indicates that individuals with higher tax …. The field experiment indicates that commitment can improve payment behavior. This effect, however, is strongly dependent …

sector, academia, and business. Awards are well visible, can raise the recipients' intrinsic motivation and creativity, and …

Motivation shows that in a knowledge-based society, this goal cannot be achieved by extrinsic motivation alone. Pay for … performance often even hurts because it crowds out intrinsic motivation like work morale. To succeed, companies have to find ways … of fostering and sustaining intrinsic motivation. With the help of in-depth case studies, representative surveys, and …