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Full-Text Articles in Social and Behavioral Sciences
A Reexamination Of “The Hidden Return To Incentives”, Jing Davis, Steven Schwartz, Richard Young
A Reexamination Of “The Hidden Return To Incentives”, Jing Davis, Steven Schwartz, Richard Young
Economics Faculty Articles and Research
Prior literature has observed a “hidden return to incentives” where principals receive more cooperation from agents when formal incentives are available but not used than when not available. Previous experiments are replicated using a gift-exchange rather than a trust game. Hidden returns to incentives are not observed, and in fact the results show the opposite. Suggestions for future research are provided.