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Article

Extrinsic rewards and crowding-out of prosocial behaviour

Details

Citation

Wollbrant C, Knutsson M & Martinsson P (2022) Extrinsic rewards and crowding-out of prosocial behaviour. Nature Human Behaviour, 6, pp. 774-781. https://doi.org/10.1038/s41562-022-01293-y

Abstract
The law of supply is a fundamental principle of economics and states that any increase in price will increase the quantity supplied. In the case of prosocial behaviour, however, increasing rewards have reduced supply, posing a challenge to standard economic theory. Attempts to study such "crowding-out" have been limited by their small scale and inherent difficulties posed by calibration of experimental tests. We analyse a large-scale natural experiment in the environmental domain consisting of 20,370 independent observations derived from aggregation of approximately 27 million individual decisions. We find that aggregate supply of prosocial behaviour is ¡°s-shaped¡±, demonstrating how attempts to increase prosocial behaviour using monetary rewards can be counter-productive. Our study shows that results derived from a small set of data points collected from an underlying s-shaped data-generating process is vulnerable to misinterpretation, and that proxy measures of intrinsic motivation ought to be collected to ensure theoretical advance.

Keywords
Economics; Environmental studies; Human behaviour

Journal
Nature Human Behaviour: Volume 6

StatusPublished
FundersSwedish Research Council
Publication date30/06/2022
Publication date online17/03/2022
Date accepted by journal06/01/2022
URL
eISSN2397-3374

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