Incentives and Their Effects in Economics

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What are the two kinds of effects of monetary incentives?

The standard direct price effect and an indirect psychological effect.

How do extrinsic incentives affect intrinsic incentives?

Extrinsic incentives crowd out intrinsic incentives.

Why may rewarding blood donations backfire?

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

What can explicit incentives signal in trust relationships?

Explicit incentives can signal distrust. Signup and view all the answers

How do incentives affect motivation?

Incentives may reduce motivation. Signup and view all the answers

What are the potential effects of incentives on ethical sensibilities?

Incentives may offend or diminish our ethical sensibilities. Signup and view all the answers

What is the usual penalty for late returning of items in public libraries?

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

What was the tested intervention for promoting rule compliance in the library?

Message intervention Signup and view all the answers

What were the advantages of the message intervention used in the study?

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

How did the different email contents sent to library members affect the proportion of late returned items and the number of days between the return and the due date?

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. Signup and view all the answers

What was found to be effective in promoting rule compliance among library users?

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

What impact duration was observed for the message intervention used in the study?

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

What did the study find about the influence of culture on how users react to messages targeted at rule compliance?

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. Signup and view all the answers

What are the tools of nudging mentioned in the text?

Framing, feedback and social norms Signup and view all the answers

How do social norms impact a wide range of behaviors?

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

What are some reasons mentioned in the text for why social information can affect individuals?

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. Signup and view all the answers