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Financial incentives do not pave the road to good experimentation
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2001
Year
Behavioral Decision MakingMonetary IncentivesInnovative FinancingIndividual Decision MakingExperimental FinanceExperimental Decision MakingBiasManagementExperimental EconomicsEconomic AnalysisDecision TheoryMechanism DesignEconomicsBehavioral SciencesPerformance-contingent PaymentFinanceFinancial IncentivesBehavioral EconomicsIncentive MechanismBusinessIncentive-centered DesignDecision TaskFinancial MechanismDecision ScienceIncentive Model
Hertwig and Ortmann suggest paying participants contingent upon performance in order to increase the thoroughness they devote to a decision task. We argue that monetary incentives can yield a number of unintended effects including distortions of the subjective representation of the task and impaired performance. Therefore, we conclude that performance-contingent payment should not be generally employed in judgment and decision research.