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The effect of payment medium on effort
Author(s) -
IncekaraHafalir Elif,
Kumar Raymond,
SilvaGoncalves Juliana
Publication year - 2022
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.13073
Subject(s) - payment , productivity , affect (linguistics) , business , actuarial science , economics , finance , psychology , economic growth , communication
Employers reward workers and researchers pay human subjects using different payment mediums. These payment mediums can have various psychological effects on workers/research participants, and thereby influence their effort provision. In this paper, we investigate the effect of payment medium on participants' effort in a lab experiment. We find evidence that payment mediums affect participants' productivity when a fixed payment scheme is used, but not under a performance‐based payment scheme.