Published July 6, 2020 | Version v1
Journal article Open

Forgoing earned incentives to signal pure motives

  • 1. University of Pennsylvania
  • 2. University of Chicago

Description

Policy makers, employers, and insurers often provide financial incentives to encourage citizens, employees, and customers to take actions that are good for them or for society (e.g., energy conservation, healthy living, safe driving). Although financial incentives are often effective at inducing good behavior, they've been shown to have self-image costs: Those who receive incentives view their actions less positively due to the perceived incompatibility between financial incentives and intrinsic motives. We test an intervention that allows organizations and individuals to resolve this tension: We use financial rewards to kick-start good behavior and then offer individuals the opportunity to give up some or all of their earned financial rewards in order to boost their self-image. Two preregistered studies—an incentivized online experiment (n = 763) on prosocial behavior and a large field experiment (n = 17,968) on exercise—provide evidence that emphasizing the intrinsic rewards of a past action leads individuals to forgo or donate earned financial rewards. Our intervention allows individuals to retroactively signal that they acted for the right reason, which we call "motivation laundering." We discuss the implications of motivation laundering for the design of incentive systems and behavioral change.

Data availability

Data deposition: Code and deidentified data are available on the Open Science Framework (OSF), https://osf.io/8pxky/?view_only=1dbedb4591674eeb803a7be5dab435e8.

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Additional details

Identifiers

DOI
10.1073/pnas.2000065117
Other
oai:uchicago.tind.io:9700

Funding

U.S. National Science Foundation
Graduate Research Fellowship
Robert Wood Johnson Foundation
Unknown funder
AKO Foundation
Unknown funder
John Alexander
Unknown funder
Mark J. Leder
Unknown funder
Warren G. Lichtenstein
University of Pennsylvania
Wharton Behavioral Lab
University of Pennsylvania
Wharton Risk Center, 2018 Russell Ackoff Doctoral Student Fellowship

UChicago Information

Division(s)
Booth School of Business
Department(s)
Behavioral Science