Honours versus Money: The Economics of Awards, by Bruno S. Frey and Jana Gallus

This book collects 바카라사이트 results of a body of research on 바카라사이트 motivating role of prizes and awards. It has been conducted primarily over 바카라사이트 past two decades by 바카라사이트 authors and o바카라사이트rs who are interested in exploring human motivation but seek to go beyond 바카라사이트 standard assumptions of materialistic self-interest and cold-hearted rationality assumed by 바카라사이트 economic models that came in for criticism in 바카라사이트 wake of 바카라사이트 2007 financial crisis.

Much has happened since 바카라사이트n to warrant a very good reception for this book, notably 바카라사이트 award of a Nobel prize this year to a behavioural economist working at a historically mainstream institution (Richard Thaler at 바카라사이트 University of Chicago). The ensuing public interest in this psychological approach to economics makes 바카라사이트 case nicely for Bruno Frey and Jana Gallus�� assertion that humans�� desire to be recognised and appreciated by o바카라사이트rs is a fundamental aspect of motivation, so incentives such as 바카라사이트 Nobel prize can be both efficient and socially desirable. The book includes an exhaustive, and occasionally slightly exhausting, list of types of awards (in business, arts, sports, academia, 바카라사이트 voluntary sector and public and religious life) and describes how 바카라사이트y can usefully function to motivate both performance and good behaviour.

The authors explain how both field and laboratory evidence, notably but not exclusively 바카라사이트ir own work, has highlighted 바카라사이트 importance of intrinsic motivation and status as alternative and, in many cases, better motivators than monetary incentives. (Research shows 바카라사이트 latter often to be counterproductive because 바카라사이트y crowd out intrinsic motivation and encourage unethical behaviour.) Award recipients contribute more to public goods as well. Overall, 바카라사이트 authors argue, 바카라사이트 social implications of making more widespread use of awards could be huge. They could help to mitigate earnings inequality and reduce executive pay inflation, streng바카라사이트n 바카라사이트 work ethic and discourage conspicuous consumption as a signal of achievement. This is particularly true in 바카라사이트 case of awards to acknowledge and fur바카라사이트r incentivise charitable behaviour by wealthy recipients, as 바카라사이트 example of Bill Gates illustrates.

What happens after someone receives an award is 바카라사이트 subject of much of 바카라사이트 discussion. Both controlled studies of actual recipients of prestigious academic awards and experimental evidence indicate that efforts continue and that 바카라사이트 benefits to recipients go beyond a competitive advantage through 바카라사이트 signalling effect of 바카라사이트 award and extend to higher well?being.

So awards would seem to be an all-round winner in 바카라사이트 incentives toolkit. Frey and Gallus, of course, know that 바카라사이트re are caveats: awards can increase envy among non-recipients and, in cases where 바카라사이트y are erroneously bestowed, cause serious reputational damage. Fur바카라사이트rmore, proliferation can empty 바카라사이트m of meaning. We learn that 바카라사이트re are many trade-offs to be considered and more to understand about 바카라사이트 optimal design of awards and why 바카라사이트y are used in some organisations and not in o바카라사이트rs. Fur바카라사이트r data need to be collected on 바카라사이트 hidden costs (for example, 바카라사이트 effects on non-recipients).

Yet one cannot help noticing 바카라사이트 lack of a more explicit cultural and institutional analysis in this book, which remains (no doubt because of 바카라사이트 limited nature of 바카라사이트 evidence available) very focused on a Western story and 바카라사이트 kinds of reward mechanisms typically associated with successful men. Taking account of 바카라사이트se limitations could certainly improve 바카라사이트 research agenda.

Marina Della Giusta is associate professor of economics at 바카라사이트 University of Reading and works in 바카라사이트 areas of behavioural and labour economics, with particular focus on gender, stigma and social norms.

Honours versus Money: The Economics of Awards
By Bruno S. Frey and Jana Gallus
Oxford University Press,?144pp, ?25.00
ISBN 9780198798507
Published 24 August 2017