Incentives and work productivity

In an attempt to increase workplace productivity, the effect of framing incentives differently was examined. In a factory setting, framing a conditional incentive (such as a bonus) as a loss or gain led to increased productivity of about 1%. Although framing incentives as losses or gains both increased productivity, framing incentives as losses increased productivity to a greater degree.

Biases Used


Other Applications: Savings and Financial Decisions, Tax Compliance, Law Abiding Behavior