Arbeitspapier
The effect of incentive structure on heuristic decision making: the proportion heuristic
When making judgments, individuals often utilize heuristics to interpret information. We report on a series of experiments designed to test the ways in which incentive mechanisms influence the use of a particular heuristic in decision-making. Specifically, we demonstrate how information regarding the number of available practice problems influences the behaviors of individuals preparing for an exam (the proportion heuristic). More importantly the extent to which this information influences behavior depends critically on the way in which performance incentives are structured. In particular, relative compensation schemes magnify the influence of this heuristic while joint compensation schemes dampen its influence. We discuss these results with respect to the literature on effective compensation.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 2857
- Klassifikation
-
Wirtschaft
- Thema
-
Entscheidung
Heuristisches Verfahren
Leistungsanreiz
Test
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Oxoby, Robert J.
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Oxoby, Robert J.
- Institute for the Study of Labor (IZA)
Entstanden
- 2007
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