Incentive Magnitude, Reference Point Shifting and Intrinsic Motivation: A Laboratory Experiment

2018 ◽  
Author(s):  
Giovanni Giusti ◽  
Roberto Dopeso-Fernández

2021 ◽  
Vol 55 (1) ◽  
Author(s):  
Christian Koch

AbstractI examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers’ perception of a “fair wage” may depend on their previous wage, their reference point. Using a laboratory experiment, I test this idea by varying whether initially concluded contracts—and their stipulated wages—can serve as reference points. My experimental results show that with initial contracts workers punish wage cuts even in recessions, leading to considerable more rigid wages. Surprisingly, this is even true without an “objective” justification to feel entitled to initial contracts.





2018 ◽  
Vol 39 (2) ◽  
pp. 99-106 ◽  
Author(s):  
Michał Białek ◽  
Przemysław Sawicki

Abstract. In this work, we investigated individual differences in cognitive reflection effects on delay discounting – a preference for smaller sooner over larger later payoff. People are claimed to prefer more these alternatives they considered first – so-called reference point – over the alternatives they considered later. Cognitive reflection affects the way individuals process information, with less reflective individuals relying predominantly on the first information they consider, thus, being more susceptible to reference points as compared to more reflective individuals. In Experiment 1, we confirmed that individuals who scored high on the Cognitive Reflection Test discount less strongly than less reflective individuals, but we also show that such individuals are less susceptible to imposed reference points. Experiment 2 replicated these findings additionally providing evidence that cognitive reflection predicts discounting strength and (in)dependency to reference points over and above individual difference in numeracy.



2004 ◽  
Vol 49 (5) ◽  
pp. 532-534 ◽  
Author(s):  
Dale H. Schunk
Keyword(s):  


1999 ◽  
Author(s):  
J. S. Carton ◽  
S Nowicki
Keyword(s):  








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