Tommaso Reggiani

This study examines the effects of donation incentives on labor supply in an online labor market through a field experiment (_n_ = 944). We manipulate the donation purpose of the incentive to be either unifying or polarizing and the size of the donation relative to the workers’ wage. Our experimental design allows us to observe the decision to accept a job (extensive margin) and different dimensions of productivity (intensive margin). We predict and show that a unifying donation purpose attracts more gig workers and improves their productivity compared to a polarizing donation purpose. We discuss the implications of these results in order to understand the role of donation incentives and labor supply in online labor markets.

We consider the notions of static and dynamic reasonableness of requests by an authority in a trust game experiment. The authority, modeled as the experimenter, systematically varies the experimental norm of what is expected from trustees to return to trustors, both in terms of the level of each request and in terms of the sequence of the requests. Static reasonableness matters in a self-biased way, in the sense that low requests justify returning less, but high requests tend to be ignored. Dynamic reasonableness also matters, in the sense that, if requests keep increasing, trustees return less compared to the same requests presented in random or decreasing order. Requests never systematically increase trustworthiness but may decrease it.

In mainstream business and economics, prizes such as the Presidential Medal of Freedom are understood as special types of incentives, with the peculiar features of being awarded in public, and of having largely symbolic value. Informed by both historical considerations and philosophical instances, our study defines fundamental theoretical differences between incentives and prizes. The conceptual factors highlighted by our analytical framework are then tested through a laboratory experiment. The experimental exercise aims to analyze how prizes and incentives impact actual individuals’ behavior differently. Our results show that both incentives (monetary and contingent) and prizes (non-monetary and discretional rewards) boost motivation to perform if awarded publicly, but only prizes crowd in motivation promoting virtuous attitude.