The effect of payment medium on effort. (25th February 2022)

• Record Type: Journal Article
• Authors: Incekara‐Hafalir, Elif; Kumar, Raymond; Silva‐Goncalves, Juliana
• Is Part Of: Economic inquiry. Volume 60:Number 3(2022)
• Page Start: 1111
• Page End: 1126
• Publication Date: 2022-02-25
• Subjects: market norms -- monetary incentives -- payment medium -- social norms; Economics -- Periodicals; 330.05
• DOI: 10.1111/ecin.13073
• Languages: English
• ISSNs: 0095-2583

Abstract

Abstract: Employers reward workers and researchers pay human subjects using different payment mediums. These payment mediums can have various psychological effects on workers/research participants, and thereby influence their effort provision. In this paper, we investigate the effect of payment medium on participants' effort in a lab experiment. We find evidence that payment mediums affect participants' productivity when a fixed payment scheme is used, but not under a performance‐based payment scheme.