How can economic incentives be designed to enhance intrinsic motivation?

How can economic incentives be designed to enhance intrinsic motivation?

David Parsonage -
Number of replies: 0

In his lecture, Bowles argues that explicit incentives often crowd out intrinsic or ethical motivations. However, I think that there are also cases in which economic incentives can enhance intrinsic motivation and encourage prosocial behaviour, so long as they are designed or framed in an appropriate way.

Research has shown that compensating volunteers for their work can undermine their intrinsic motivation, which is in line with the notion of crowding out. However, that does not mean that explicit economic incentives are incompatible with volunteer work. Rather, incentives should be designed/framed so that they are aligned with and subsequently preserve the intrinsic, altruistic motivations driving people’s behaviour. Instead of paying volunteers for the work that they have already done, incentives ought to support future work. This would emphasise that the intention of the incentive is to enable people to continue making a positive impact, reinforcing their intrinsic motivation to contribute.

Furthermore, incentives ought to be framed in a way that recognises the value of someone’s past contributions and expresses gratitude for their ongoing commitment. Such recognition not only makes people aware of the fact that their efforts are acknowledged and appreciated, but also gives them a sense of competence that may bolster their intrinsic motivation and encourage further prosocial behaviour. Incentives that enable people to pursue activities aligned with their own interests and passions could also give people a sense of autonomy which may further help maintain their intrinsic motivation.