Effects of incentive framing on performance and effort: evidence from a medically framed experiment

Abstract We study the effects on performance of incentives framed as gains or losses, well effort channels through which individuals increase performance. also explore potential spill-over a non-incentivised activity. Subjects participated in medically real-effort task under one three contracts, varying type incentive received: (1) no incentive; (2) gain; (3) loss. find that improved similarly with losses gains. However, differently two frames: participants’ greater attention (fewer mistakes), while bonuses time spent rewarded There is effect, either negative positive, discuss meaning and implications our results for design contracts.