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The Effect of Incentive Framing on Working Harder: Doing More Than We Predict

This paper tests the effectiveness of extrinsic motivation (e.g., monetary incentives) at promoting effort on challenging tasks depending on whether the incentive is framed as a gain or a loss from a reference point. In a series of studies we find that loss-framed incentives motivate people significantly more than a gain-framed incentives. Further, we show that people incorrectly predict that the gain framed incentive would be more motivating. We identify a belief in the positive correlation between task enjoyment and motivation contributes to the disparity between prediction and experience.