The Pat on the Back Paradox and Human Adjustment to Economic Incentives
نویسندگان
چکیده
Informal rewards, also known as pats on the back, are shown to be extremely effective rewards in some settings, prompting some managers to declare them as more “valuable” to employees than monetary rewards. On the other hand, salary and benefits continue to be the main motivators used by firms, and are clearly not substitutable by pats on the back. We name this puzzling dichotomy “the pat on the back paradox” and seek behavioral regularities that could explain this puzzle. 1 Very preliminary. Do not quote or circulate.
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