Incentives to Persevere

Incekara-Hafalir, E; Lee, GHY; Siah, AKL; Xiao, E

Incentives to Persevere

Incekara-Hafalir, E Lee, GHY Siah, AKL Xiao, E

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Publisher:: INFORMS
Publication Type:: Journal Article
Citation:: Management Science, 2023, 69, (9), pp. 5378-5393
Issue Date:: 2023-09-01

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Field	Value	Language
dc.contributor.author	Incekara-Hafalir, E
dc.contributor.author	Lee, GHY
dc.contributor.author	Siah, AKL
dc.contributor.author	Xiao, E
dc.date.accessioned	2024-03-06T03:26:34Z
dc.date.available	2024-03-06T03:26:34Z
dc.date.issued	2023-09-01
dc.identifier.citation	Management Science, 2023, 69, (9), pp. 5378-5393
dc.identifier.issn	0025-1909
dc.identifier.issn	1526-5501
dc.identifier.uri	http://hdl.handle.net/10453/176193
dc.description.abstract	Achieving success often requires persistent effort. We study the effectiveness of two reward mechanisms, all-or-nothing and piece-rate, to incentivize full completion of repeated tasks over time. Our theoretical analysis shows that exogenously imposing the all-or-nothing mechanism can be ineffective due to the potential discouragement effect. In contrast, empowering individuals to choose between the two reward mechanisms can significantly improve the full completion rate. Data from a series of field experiments and follow-up replications provide robust evidence that the all-or-nothing mechanism is effective only when it is presented as an option. Our results highlight the importance of choice in incentivizing persistent effort.
dc.language	English
dc.publisher	INFORMS
dc.relation.ispartof	Management Science
dc.relation.isbasedon	10.1287/MNSC.2022.4649
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	08 Information and Computing Sciences, 15 Commerce, Management, Tourism and Services
dc.subject.classification	Operations Research
dc.subject.classification	35 Commerce, management, tourism and services
dc.subject.classification	38 Economics
dc.subject.classification	46 Information and computing sciences
dc.title	Incentives to Persevere
dc.type	Journal Article
utslib.citation.volume	69
utslib.for	08 Information and Computing Sciences
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2024-03-06T03:26:33Z
pubs.issue	9
pubs.publication-status	Published
pubs.volume	69
utslib.citation.issue	9

Abstract:

Achieving success often requires persistent effort. We study the effectiveness of two reward mechanisms, all-or-nothing and piece-rate, to incentivize full completion of repeated tasks over time. Our theoretical analysis shows that exogenously imposing the all-or-nothing mechanism can be ineffective due to the potential discouragement effect. In contrast, empowering individuals to choose between the two reward mechanisms can significantly improve the full completion rate. Data from a series of field experiments and follow-up replications provide robust evidence that the all-or-nothing mechanism is effective only when it is presented as an option. Our results highlight the importance of choice in incentivizing persistent effort.

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http://hdl.handle.net/10453/176193