Volume 9, Issue 32 (7-2018)                   jemr 2018, 9(32): 179-215 | Back to browse issues page


XML Persian Abstract Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Jalali O, Nasrollahi Z, Hatefi Madjumerd M. Investigating the Effect of Rewards on Individual Players' Efforts: A Behavioral Approach. jemr 2018; 9 (32) :179-215
URL: http://jemr.khu.ac.ir/article-1-1599-en.html
1- Yazd University
2- Yazd University , nasr@yazd.ac.ir
3- University of Tehran
Abstract:   (6302 Views)
The main goal of the study is to examine the effect of rewards on the behavior of players in a team activity. In this framework, by performing 12 sequential and simultaneous games in a laboratory environment examine the rewarding effect on players' behavior. Students from Yazd universities surveyed and the sample of 182 students is in the form of two groups, which collected in total for 2184 matches in 12 games. The results show that the increase in game rewards leads to a reduction in the player's first attempt in the game. Also, the structure of the game for simultaneous or sequential decision making does not affect the decision of the first player, but the decision of the second player is affected. In addition, the reciprocal effects of rewards and structure only affect the decision of the second player.
Full-Text [PDF 936 kb]   (2184 Downloads)    
Type of Study: Applicable | Subject: سایر
Received: 2017/08/31 | Accepted: 2018/07/22 | Published: 2018/09/12

References
1. Abdoli, GH., Majed V. ( 2012). Analyzing OPEC Members Behavior: A Cooperation Game Approach. Jemr, 2 (7), 27-50.
2. Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. The American economic review, 62(5), 777-795.
3. Ancona, D. G., & Nadler, D. A. (1989). Top hats and executive tales: Designing the senior team. MIT Sloan Management Review, 31(1), 19.
4. Angrist, J., Lang, D., & Oreopoulos, P. (2009). Incentives and services for college achievement: Evidence from a randomized trial. American Economic Journal: Applied Economics, 1(1), 136-163. [DOI:10.1257/app.1.1.136]
5. Argyle, M., & Furnham, A. (2013). The psychology of money. Routledge. [DOI:10.4324/9780203506011]
6. Athias, L., & Soubeyran, R. (2013). Demand risk allocation in incomplete contracts: the case of public private partnerships. Unpublished manuscript, University of Lausanne.
7. Babcock, L., Congdon, W. J., Katz, L. F., & Mullainathan, S. (2012). Notes on behavioral economics and labor market policy. IZA Journal of Labor Policy, 1(1), 2. [DOI:10.1186/2193-9004-1-2]
8. Babcock, P., Bedard, K., Charness, G., Hartman, J., & Royer, H. (2015). Letting down the team? Social effects of team incentives. Journal of the European Economic Association, 13(5), 841-870. [DOI:10.1111/jeea.12131]
9. Baiman, S. (1982). Agency theory in managerial accounting: A survey. Journal of Accounting literature, 1, 154-213.
10. Baiman, S. (1990). Agency research in managerial accounting: A second look. Accounting, Organizations and Society, 15(4), 341-371. [DOI:10.1016/0361-3682(90)90023-N]
11. Bandura, A. (1986). The explanatory and predictive scope of self-efficacy theory. Journal of social and clinical psychology, 4(3), 359-373. [DOI:10.1521/jscp.1986.4.3.359]
12. Bandura, A. (1991). Social cognitive theory of self-regulation. Organizational behavior and human decision processes, 50(2), 248-287. [DOI:10.1016/0749-5978(91)90022-L]
13. Bandura, A. (1997). Editorial. American Journal of Health Promotion, 12(1), 8-10. [DOI:10.4278/0890-1171-12.1.8]
14. Barron, J. M., & Gjerde, K. P. (1997). Peer pressure in an agency relationship. Journal of Labor economics, 15(2), 234-254. [DOI:10.1086/209832]
15. Beckmann, M., Cornelissen, T., & Kräkel, M. (2017). Self-managed working time and employee effort: theory and evidence. Journal of Economic Behavior & Organization, 133, 285-302. [DOI:10.1016/j.jebo.2016.11.013]
16. Beersma, B., Hollenbeck, J. R., Humphrey, S. E., Moon, H., Conlon, D. E., & Ilgen, D. R. (2003). Cooperation, competition, and team performance: Toward a contingency approach. Academy of Management Journal, 46(5), 572-590. [DOI:10.5465/30040650]
17. Bennett, V. M., & Levinthal, D. A. (2017). Firm lifecycles: Linking employee incentives and firm growth dynamics. Strategic Management Journal, 38(10), 2005-2018. [DOI:10.1002/smj.2644]
18. Bettinger, E. P. (2012). Paying to learn: The effect of financial incentives on elementary school test scores. Review of Economics and Statistics, 94(3), 686-698. [DOI:10.1162/REST_a_00217]
19. Blinder, A. S. (1999). Eight steps to a new financial order. Foreign affairs, 50-63. [DOI:10.2307/20049450]
20. Bonner, S. E., & Sprinkle, G. B. (2002). The effects of monetary incentives on effort and task performance: theories, evidence, and a framework for research. Accounting, Organizations and Society, 27(4), 303-345. [DOI:10.1016/S0361-3682(01)00052-6]
21. Bonner, S. E., Hastie, R., Sprinkle, G. B., & Young, S. M. (2000). A review of the effects of financial incentives on performance in laboratory tasks: Implications for management accounting. Journal of Management Accounting Research, 12(1), 19-64. [DOI:10.2308/jmar.2000.12.1.19]
22. Bucklin, B. R., & Dickinson, A. M. (2001). Individual monetary incentives: A review of different types of arrangements between performance and pay. Journal of Organizational Behavior Management, 21(3), 45-137. [DOI:10.1300/J075v21n03_03]
23. Charness, G., & Gneezy, U. (2009). Incentives to exercise. Econometrica, 77(3), 909-931. [DOI:10.3982/ECTA7416]
24. Chaudhuri, A., Schotter, A., & Sopher, B. (2009). Talking Ourselves to Efficiency: Coordination in Inter‐Generational Minimum Effort Games with Private, Almost Common and Common Knowledge of Advice. The Economic Journal, 119(534), 91-122. [DOI:10.1111/j.1468-0297.2008.02207.x]
25. Che, Y. K., & Yoo, S. W. (2001). Optimal incentives for teams. American Economic Review, 525-541. [DOI:10.1257/aer.91.3.525]
26. Chiaburu, D. S., Sawyer, K. B., & Thoroughgood, C. N. (2010). Transferring More than Learned in Training: Employees' and managers'(over) generalization of skills. International Journal of Selection and Assessment, 18(4), 380-393. [DOI:10.1111/j.1468-2389.2010.00520.x]
27. Christ, M. H., & Vance, T. W. (2018). Cascading controls: The effects of managers' incentives on subordinate effort to help or harm. Accounting, Organizations and Society, 65, 20-32. [DOI:10.1016/j.aos.2017.10.003]
28. Condly, S. J., Clark, R. E., & Stolovitch, H. D. (2003). The Effects of Incentives on Workplace Performance: A Meta‐analytic Review of Research Studies 1. Performance Improvement Quarterly, 16(3), 46-63. [DOI:10.1111/j.1937-8327.2003.tb00287.x]
29. DeMatteo, J. S., Eby, L. T., & Sundstrom, E. (1998). Team-based rewards: Current empirical evidence. Research in organizational behavior, 20, 141-183.
30. Durham, C. C., & Bartol, K. M. (2000). Pay for performance. Handbook of principles of organizational behavior, 150-165.
31. Ehrenberg, R. G., & Bognanno, M. L. (1990). Do tournaments have incentive effects?. Journal of Political Economy, 98(6), 1307-1324. [DOI:10.1086/261736]
32. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74. [DOI:10.5465/amr.1989.4279003]
33. Fama, E. F., & Jensen, M. C. (1983). Agency problems and residual claims. The Journal of Law and Economics, 26(2), 327-349. [DOI:10.1086/467038]
34. Fehr, E., & Schmidt, K. M. (2004). Fairness and Incentives in a Multi‐task Principal-Agent Model. The Scandinavian Journal of Economics, 106(3), 453-474. [DOI:10.1111/j.0347-0520.2004.00372.x]
35. Fryer Jr, R. G. (2011). Financial incentives and student achievement: Evidence from randomized trials. The Quarterly Journal of Economics, 126(4), 1755-1798. [DOI:10.1093/qje/qjr045]
36. Garbers, Y., & Konradt, U. (2014). The effect of financial incentives on performance: A quantitative review of individual and team‐based financial incentives. Journal of occupational and organizational psychology, 87(1), 102-137. [DOI:10.1111/joop.12039]
37. Gershkov, A., & Winter, E. (2015). Formal versus Informal Monitoring in Teams. American Economic Journal: Microeconomics, 7(2), 27-44. [DOI:10.1257/mic.20130277]
38. Govindarajulu, N., & Daily, B. F. (2004). Motivating employees for environmental improvement. Industrial management & data systems, 104(4), 364-372. [DOI:10.1108/02635570410530775]
39. Grabke-Rundell, A., & Gomez-Mejia, L. R. (2002). Power as a determinant of executive compensation. Human Resource Management Review, 12(1), 3-23. [DOI:10.1016/S1053-4822(01)00038-9]
40. Guillen, P., Merrett, D., & Slonim, R. (2014). A new solution for the moral hazard problem in team production. Management Science, 61(7), 1514-1530. [DOI:10.1287/mnsc.2014.1922]
41. Hamilton, B. H., Nickerson, J. A., & Owan, H. (2003). Team incentives and worker heterogeneity: An empirical analysis of the impact of teams on productivity and participation. Journal of political Economy, 111(3), 465-497. [DOI:10.1086/374182]
42. Hannan, R. L. (2001). The effect of firm profit on fairness perceptions, wages and employee effort. 3642-3642.
43. Holmstrom, B. (1982). Moral hazard in teams. The Bell Journal of Economics, 324-340. [DOI:10.2307/3003457]
44. Honeywell-Johnson, J. A., & Dickinson, A. M. (1999). Small group incentives: A review of the literature. Journal of Organizational Behavior Management, 19(2), 89-121. [DOI:10.1300/J075v19n02_06]
45. Itoh, H. (1991). Incentives to help in multi-agent situations. Econometrica: Journal of the Econometric Society, 611-636. [DOI:10.2307/2938221]
46. Jalali, O., Nasrolahi, Z. (2018). The effect of religiosity on Confrontation between motivationsin laboratory environments implementing a two-stage sequential game with full information. Islamic Economy. 18 (69): 81-115.
47. Jenkins Jr, G. D., Mitra, A., Gupta, N., & Shaw, J. D. (1998). Are financial incentives related to performance? A meta-analytic review of empirical research. [DOI:10.1037/0021-9010.83.5.777]
48. John, L. K., Loewenstein, G., Troxel, A. B., Norton, L., Fassbender, J. E., & Volpp, K. G. (2011). Financial incentives for extended weight loss: a randomized, controlled trial. Journal of general internal medicine, 26(6), 621-626. [DOI:10.1007/s11606-010-1628-y]
49. Kandel, E., & Lazear, E. P. (1992). Peer pressure and partnerships. Journal of political Economy, 100(4), 801-817. [DOI:10.1086/261840]
50. Kaneko, M., & Kline, J. J. (2015). Understanding the other through social roles. International Game Theory Review, 17(01), 1540005. [DOI:10.1142/S0219198915400058]
51. Khakestari , M., Joleini, S., Ameli, A. (2018). An Analysis of the Behavior of OPEC With the Approach of Evolutionary Game Theory. jemr 2018, 8(31): 103-130.
52. Klor, E. F., Kube, S., & Winter, E. (2014). Can higher rewards lead to less effort? Incentive reversal in teams. Journal of Economic Behavior & Organization, 97, 72-83. [DOI:10.1016/j.jebo.2013.10.010]
53. Kozlowski, S. W., & Ilgen, D. R. (2006). Enhancing the effectiveness of work groups and teams. Psychological science in the public interest, 7(3), 77-124. [DOI:10.1111/j.1529-1006.2006.00030.x]
54. Kremer, M., Miguel, E., & Thornton, R. (2009). Incentives to learn. The Review of Economics and Statistics, 91(3), 437-456. [DOI:10.1162/rest.91.3.437]
55. Kruglanski, A. W., Orehek, E., Higgins, E. T., Pierro, A., & Shalev, I. (2010). Modes of Self‐Regulation. Handbook of personality and self-regulation, 375-402. [DOI:10.1002/9781444318111.ch17]
56. Landeo, C. M., & Spier, K. E. (2015). Incentive contracts for teams: Experimental evidence. Journal of Economic Behavior & Organization, 119, 496-511. [DOI:10.1016/j.jebo.2015.09.008]
57. Lawler III, E. E., & Mohrman, S. A. (2003). HR as a strategic partner: What does it take to make it happen?. People and Strategy, 26(3), 15.
58. Legros, P., & Matthews, S. A. (1993). Efficient and nearly-efficient partnerships. The Review of Economic Studies, 60(3), 599-611. [DOI:10.2307/2298126]
59. Locke, E. A., & Latham, G. P. (1990). Work motivation and satisfaction: Light at the end of the tunnel. Psychological science, 1(4), 240-246. [DOI:10.1111/j.1467-9280.1990.tb00207.x]
60. Locke, E. A., Latham, G. P., & Erez, M. (1988). The determinants of goal commitment. Academy of management review, 13(1), 23-39. [DOI:10.5465/amr.1988.4306771]
61. McAfee, R. P., & McMillan, J. (1991). Optimal contracts for teams. International Economic Review, 561-577. [DOI:10.2307/2527107]
62. Merchant, K. A., & Van der Stede, W. A. (2007). Management control systems: performance measurement, evaluation and incentives. Pearson Education.
63. Messersmith, J. G., Guthrie, J. P., Ji, Y. Y., & Lee, J. Y. (2011). Executive turnover: the influence of dispersion and other pay system characteristics. Journal of Applied Psychology, 96(3), 457. [DOI:10.1037/a0021654]
64. Milgrom, P. R., & Roberts, J. D. (1992). Economics, organization and management.
65. Patten, T. H. (1977). Pay: Employee compensation and incentive plans. Free Press.
66. Porter, L. W., & Lawler, E. E. (1968). What job attitudes tell about motivation. Harvard business review, 46(1), 118-126.
67. Prendergast, C. (1999). The provision of incentives in firms. Journal of economic literature, 37(1), 7-63. [DOI:10.1257/jel.37.1.7]
68. Renn, R. W. (1998). Participation's effect on task performance: Mediating roles of goal acceptance and procedural justice. Journal of Business Research, 41(2), 115-125. [DOI:10.1016/S0148-2963(97)00020-9]
69. Royer, H., Stehr, M., & Sydnor, J. (2015). Incentives, commitments, and habit formation in exercise: evidence from a field experiment with workers at a fortune-500 company. American Economic Journal: Applied Economics, 7(3), 51-84. [DOI:10.1257/app.20130327]
70. Rynes, S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pay for performance. Annu. Rev. Psychol., 56, 571-600. [DOI:10.1146/annurev.psych.56.091103.070254]
71. Smirnov, V., & Wait, A. (2015). Innovation in a generalized timing game. International Journal of Industrial Organization, 42, 23-33. [DOI:10.1016/j.ijindorg.2015.06.003]
72. Spink, L. (2000). Team rewards and incentives: lessons from the literature. Tips & Tools Series: Collaborative Alliances, (3).
73. Volpp, K. G., Troxel, A. B., Pauly, M. V., Glick, H. A., Puig, A., Asch, D. A., ... & Corbett, E. (2009). A randomized, controlled trial of financial incentives for smoking cessation. New England Journal of Medicine, 360(7), 699-709. [DOI:10.1056/NEJMsa0806819]
74. Vranceanu, R., El Ouardighi, F., & Dubart, D. (2015). Team Production with Punishment Option: Insights from a Real‐Effort Experiment. Managerial and Decision Economics, 36(6), 408-420. [DOI:10.1002/mde.2678]
75. Wiens, T., & Ullrich, C. A. (2016). Scheduling with Team Production Effects. [DOI:10.2139/ssrn.2781470]
76. Winter, E. (2009). Incentive reversal. American Economic Journal: Microeconomics, 1(2), 133-147 [DOI:10.1257/mic.1.2.133]
77. Wright, P. M. (1989). Test of the mediating role of goals in the incentive-performance relationship. Journal of Applied Psychology, 74(5), 699. [DOI:10.1037/0021-9010.74.5.699]
78. Zenger, T. R. (1992). Why do employers only reward extreme performance? Examining the relationships among performance, pay, and turnover. Administrative Science Quarterly, 198-219. [DOI:10.2307/2393221]
79. Zenger, T. R., & Marshall, C. R. (2000). Determinants of incentive intensity in group-based rewards. Academy of Management Journal, 43(2), 149-163. [DOI:10.2307/1556373]

Add your comments about this article : Your username or Email:
CAPTCHA

Send email to the article author


Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© 2024 CC BY-NC 4.0 | Journal of Economic Modeling Research

Designed & Developed by : Yektaweb