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Awards, incentives and mutual benefit

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  • Robert Sugden

    (University of East Anglia)

Abstract

Frey argues that if buyers and sellers of labour understand their relationship merely as exchange, workers’ intrinsic motivation can be impaired; this problem can be partially overcome by using awards as a supplementary reward mechanism. I argue that this proposal is self-defeating. In an economy that relies on the division of labour, it is an unavoidable fact that individuals are subject to the will of others; award-giving practices are merely camouflage. However, recognising this fact need not impair anyone’s sense of autonomy as a paid worker if participation in market exchanges is understood as expressing intentions for mutual benefit.

Suggested Citation

  • Robert Sugden, 2019. "Awards, incentives and mutual benefit," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(1), pages 5-16, March.
    • Handle: RePEc:spr:inrvec:v:66:y:2019:i:1:d:10.1007_s12232-017-0288-1
    DOI: 10.1007/s12232-017-0288-1
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    References listed on IDEAS

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    1. Grant, Ruth W., 2002. "The ethics of incentives: historical origins and contemporary understandings," Economics and Philosophy, Cambridge University Press, vol. 18(1), pages 111-139, April.
    2. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    3. Bruni, Luigino & Sugden, Robert, 2008. "Fraternity: Why The Market Need Not Be A Morally Free Zone," Economics and Philosophy, Cambridge University Press, vol. 24(1), pages 35-64, March.
    4. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    5. Luigino Bruni & Robert Sugden, 2013. "Reclaiming Virtue Ethics for Economics," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 141-164, Fall.
    6. Brennan, Geoffrey & Pettit, Philip, 2000. "The hidden economy of esteem," Economics and Philosophy, Cambridge University Press, vol. 16(1), pages 77-98, April.
    7. Bruno S. Frey, 1994. "How Intrinsic Motivation is Crowded out and in," Rationality and Society, , vol. 6(3), pages 334-352, July.
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    Citations

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    Cited by:

    1. Luigino Bruni & Vittorio Pelligra & Tommaso Reggiani & Matteo Rizzolli, 2020. "The Pied Piper: Prizes, Incentives, and Motivation Crowding-in," Journal of Business Ethics, Springer, vol. 166(3), pages 643-658, October.

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    More about this item

    Keywords

    Awards; Incentives; Mutual benefit; Intrinsic motivation;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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