The effect of financial incentives and task-specific cognitive abilities on task performance

Arbeitspapier

We extend evidence on the interaction between financial incentives and cognitive abilities by focusing on the effect of task-specific abilities. In a memory-intensive task situated in an accounting context, the effect of accounting education on performance is stronger under financial incentives as compared to flat rate pay. Subjects with more accounting education respond stronger to financial incentives. Hence using incentives efficiently may involve targeting them at high-ability individuals. More generally, taking into account the incentive-ability interaction seems important when interpreting observed behavior in cognitively demanding lab and field economic environments.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2011,050

Classification and Topics

• Classification: Wirtschaft ; Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access ; Design of Experiments: Laboratory, Individual ; Field Experiments ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: financial incentives ; cognitive ability ; performance ; experiment ; Arbeitsleistung ; Anforderungsprofil ; Leistungsentgelt ; Kognition ; Test

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rydval, Ondérej
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/56844
• Last update: 10.03.2025, 11:42 AM CET