People have to earn a living  – base line

Tom Sawer effect:

Work – obliged

Play – non obliged

Contingent rewards – If this then Rewards Convert play into work

   Give up autonomy they are no longer in control

Tangible rewards hold negative effect on intrinsic motivation

If extrinsic financial rewards are used you have to pay a Meaningful amount? No?

Creativity: also goes down with extrinsic rewards

Self Rewards: Flexibility inventiveness conceptual understanding

Drive to do Interesting challenging absorbing work is the reward in itself

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1. They can extinguish intrinsic motivation
2. They can diminish performance
3. Crush Creativity
4. Crowd out good behaviour
5. Can encourage cheating, shortcuts and unethical behaviour
6. Can become addictive
7. Can foster short term thinking

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Blood has to be paid?

Didn’t work

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Goals for Mastery are effective

External Set Goals are not

Goals makes focus narrow, not ideal

Goals may cause systematic problems due to unethical behaviour, increased risk taking, decreased cooperation, decreased intrinsic motivation, use care

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Reward is the activity itself

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Punishment helps?

Teacher example: come late teachers will have to stay late : moral obligation as care givers to their sons and daughters

Come late and pay fine : purely transactional meant you can buy more time.

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Incentives give a surge and then goes down and then you need increased doses

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Principle agent theory

Principle Motivator

Agent Motivatee balances his own interest with principles was offering

Offering a reward make the task is  undesirable

Offer too small of a reward, agent won’t comply,

If the offer was enticing enough to do it for the first time, principle is domed to give it a second time, You cannot expect them to do it for free every

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FMRI

(Rewards activate risk taking: casino)

Delights

Disipates

Demands another dose

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So focused on the price, more than a solution

Rewards can limit breadth of thinking, especially if then ones are contingent if then ones then it can also reduce the depth of the thinking: focus on what is immediately before, effects long term performance

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Short term gain behaviour: unethical behaviour and addicts

Cheaters want quick win regardless of lasting consequences

Addicts want a quick fix regardless of the eventual harm

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Company goals:

Less research and development, gain of short term reward, myopic but long term loss

Eg: Housing Bubble

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Mastery is a good goal

Meaningful achievement cannot be incentivised