Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80510
Authors: 
Ramm, Joachim
Tjøtta, Sigve
Torsvik, Gaute
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4374
Abstract: 
It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out of the box thinking. This paper reports from an experiment designed to test if the negative incentive effect is present also when individuals work together to solve such problems. We do not find a negative impact of incentives on group performance. As a comparison we ran the same experiment (the Candle Problem) with and without incentives for individuals as well. Incentives did not reduce performance there either. Comparing individuals with groups we find that team-work facilitates creative problems solving. Individuals appear to be more creative when working together than when working alone.
Subjects: 
incentives
innovation
creativity
JEL: 
J24
J31
O31
M11
Document Type: 
Working Paper

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