Mike Anderson,
I'd like to follow up on something we touched on, but didn't follow up on as I'd have liked. I think you make some very good points, and in re-reading my replies I'm afraid it might appear I didn't consider them carefully. Sometimes I get pressed for time and answer too briefly, and can appear more adversarial than I mean to.
You commented on the effect of incentives on creative work, and it's an interesting topic. In a previous post I briefly mentioned studies that report some interesting and counter-intuitive findings on the subject. You can find one such report
here.
One example of Motivational Crowding Theory concerns blood donors:
The author of
The Gift Relationship argued that paying for blood undermines intrinsic motivations for donating, and would reduce or even totally eliminate the willingness to give blood. Economists were baffled. How could a positive incentive have a negative effect? Surely something is better than nothing. This attitude represents a good example of theory induced blindness. The economists theory about the way the world works prevented them from understanding how the world really works. Subsequent studies show that people donate blood largely for the intrinsic rewards, so it's not a case of something or nothing, but a case of substituting one kind of reward for another. The extrinsic reward (remuneration) changed the nature of the transaction, and the extrinsic reward was less of an incentive than the intrinsic ones, creating a
crowding out effect.
My point is that any time the rewards for doing something are largely, or even partially intrinsic, it's far from certain that the addition of an extrinsic reward will increase the incentive, and it's very possible it could have the opposite effect.
I hope you find this as interesting as I do, and I hope you understand I've enjoyed this discussion with you.
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