EconStor >
Max-Planck-Institut für Ökonomik, Jena >
Jena Economic Research Papers, MPI für Ökonomik >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/25605
  
Title:The interaction between financial incentives and task-specific cognitive capital: more evidence in support of Camerer and Hogarth (1999) PDF Logo
Authors:Rydval, Ondřej
Issue Date:2007
Series/Report no.:Jena economic research papers 2007,039
Abstract:This paper extends existing evidence on the interaction between financial incentives and cognitive capital. I focus on the impact of task-specific cognitive capital, the role of which is central to the capital-labor-production framework of Camerer and Hogarth (1999) and has long been studied in cognitive science and behavioral decision research. Using a task situated in an accounting setting, I show that both financial incentives and task-specific cognitive capital, and especially their interaction, matter for performance. In particular, the effect of task-specific cognitive capital on performance is stronger under performance-based financial incentives as compared to flat-rate incentives. The interaction effect arises because performance-based financial incentives lead to better performance only for individuals with more task-specific cognitive capital. I draw implications for compensation practices in experiments as well as work settings.
Subjects:Financial incentives
Cognitive abilities
Experiments
Field experiments
JEL:C81
C91
C93
D83
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

Files in This Item:
File Description SizeFormat
547114176.PDF572.74 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/25605

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.