- A-Z
- Jena Economic Resea...
- Volume 1
- The Interaction bet...
- Autor(in)
- Erschienen
- 18. Juli 2007
- Nummer des Discussion-Papers
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2007-039
- Schlagwort(e)
-
cognitive abilities
experiments
field experiments
financial incentives
- Zusammenfsg.
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This paper extends existing evidence on the interaction between financial incentives and cognitive capital. I focus on the impact of task-specific cognitive capital, the role of which is central to the capital-labor-production framework of Camerer and Hogarth (1999) and has long been studied in cognitive science and behavioral decision research. Using a task situated in an accounting setting, I show that both financial incentives and task-specific cognitive capital, and especially their interaction, matter for performance. In particular, the effect of task-specific cognitive capital on performance is stronger under performance-based financial incentives as compared to flat-rate incentives. The interaction effect arises because performance-based financial incentives lead to better performance only for individuals with more task-specific cognitive capital. I draw implications for compensation practices in experiments as well as work settings.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- C81 - Microeconomic Data ; C91 - Laboratory, Individual Behavior ; C93 - Field Experiments ; D83 - Search; Learning; Information and Knowledge; Communication; Belief