Incentives, self-selection, and coordination of motivated agents for the production of social goods
We study, theoretically and empirically, the effect of incentives on the self-selection and coordination of motivated agents to produce “social” goods in the presence of positive effort complementarities. Theory predicts that lowering incentives increases social-good production via the self-selection and coordination of motivated agents into low-incentive work environments. We test this prediction in a novel lab experiment that allows us to isolate the effect of self-selection cleanly. Results show that social-good production more than doubles if incentives are low, but only if self-selection is possible. The analysis identifies a crucial role of incentives in the matching and coordination of motivated agents.
Authors
- Kevin Bauer (ORCID: https://orcid.org/0000-0001-8172-1261)
- Michael Kosfeld (ORCID: https://orcid.org/0000-0003-2427-0825)
- Ferdinand A. von Siemens (ORCID: https://orcid.org/0000-0001-8939-5907)
Institutions
- Goethe University Frankfurt (DE)
Publication Details
- Journal
- Games and Economic Behavior
- Published
- 2025-05-08
- DOI
- https://doi.org/10.1016/j.geb.2025.04.010
- Primary Topic
- Experimental Behavioral Economics Studies
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Alfons und Gertrud Kassel-Stiftung