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Personality and physician performance pay: Evidence from a behavioral experiment in health

Author

Listed:
  • Groß, Mona

    (Department of Health Care Management, University of Cologne, Germany)

  • Hennig-Schmidt, Heike

    (Department of Economics, University of Bonn, Germany Departement of Health Economics and Health Management, University of Oslo, Norway)

  • Wiesen, Daniel

    (Department of Health Care Management, University of Cologne, Germany)

Abstract

We study how the heterogeneity in responses to performance pay can be explained by personality traits. We utilize data from behavioral experiments and surveys on personality traits with physicians, medical students, and non-medical students. Performance pay is introduced at a within-subject level and complements either fee-for-service or capitation. We find that the payment system matters regarding the behavioral impact of personality traits. More conscientious and more agreeable individuals provide higher quality of care under capitation. Although performance pay further improves the quality, more conscientious and agreeable individuals respond less to capitation-based performance pay. Other personality traits are not behaviorally relevant. Under fee-for-service-based schemes, personality traits do not significantly related to individuals’ behavior. Our findings inform the incentive design for physicians and the potential sorting into incentive schemes based on personality traits.

Suggested Citation

  • Groß, Mona & Hennig-Schmidt, Heike & Wiesen, Daniel, 2023. "Personality and physician performance pay: Evidence from a behavioral experiment in health," HERO Online Working Paper Series 2023:5, University of Oslo, Health Economics Research Programme.
    • Handle: RePEc:hhs:oslohe:2023_005
    DOI: https://www.med.uio.no/helsam/forskning/nettverk/hero/publikasjoner/skriftserie/2023/2023-5.pdf
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    More about this item

    Keywords

    Fee-for-service; capitation; blended pay for performance; personality traits; quality of care; heterogeneity;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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