Incentives and Their Effects in Economics

The standard direct price effect and an indirect psychological effect.

Extrinsic incentives crowd out intrinsic incentives.

It suggests that the donor is less interested in being altruistic than in making money.

<p>Explicit incentives can signal distrust.</p> Signup and view all the answers

<p>Incentives may reduce motivation.</p> Signup and view all the answers

<p>Incentives may offend or diminish our ethical sensibilities.</p> Signup and view all the answers

<p>Exclusion from the possibility of borrowing more items for a time period equal to the number of days</p> Signup and view all the answers

<p>Message intervention</p> Signup and view all the answers

<p>Virtually costless, non-invasive, simple and flexible to implement</p> Signup and view all the answers

<p>All the 4 contents significantly reduced both the proportion of late returned items and the number of days between the return and the due date.</p> Signup and view all the answers

<p>A general reminder of the users' duty to comply with the rule</p> Signup and view all the answers

<p>Short term, but it is replicated after getting a second email</p> Signup and view all the answers

<p>Culture seems to influence how much users react to messages targeted at rule compliance; users from English speaking countries and Asian users react significantly more than Spaniards.</p> Signup and view all the answers

<p>Framing, feedback and social norms</p> Signup and view all the answers

<p>Social norms impact a wide range of behaviors through fast, intuitive, and emotional mental heuristics.</p> Signup and view all the answers

<p>People may wish to fit in, avoid social disapproval, seek social esteem, and take the behavior of others as an indication of what is most effective.</p> Signup and view all the answers