Reward Choices: Experimental Evidence on Cognitive Task Performance

This study examines the effect of a tangible reward choice in task settings that require varyinglevels of cognitive effort from participants. We employ a laboratory experiment in which we manipulateboth the availability of a reward choice (i.e., participants either choose among a set of tangible rewards orthey are assigned one), and task difficulty (i.e., a simple task versus a more cognitively demanding task).Drawing on insights from behavioral economics we predict that reward choice and task difficulty interactsuch that reward choice, compared to no reward choice, increases task performance more in cognitivelydemanding tasks than in simpler tasks. Our results are consistent with this prediction. Consistent withour theory, we find that reward choice, compared to no choice, enables individuals to align their rewardselection with their preferences. This preference matching mediates the relationship between reward choiceand task performance, but only in cognitively demanding tasks. We contribute to the literature on incentivesby demonstrating that offering a choice of rewards can enhance task performance, particularly in tasks thatrequire greater cognitive effort.