Friday 12 December 2008

Tore Ellingsen and Magnus Johannesson(2007),”Paying Respect”

This is a paper about the non-monetary incentive. In pure economics, people work for only monetary incentive. However, it is not true for real world, because workers get utility from respect from employers and co-workers.

There are two models about behavioral agency theory; the social preference approach, and the social esteem approach. Former focuses relationship among people, and latter focuses social value and its influence to incentives. In this paper, authors adapt the former, and discuss evidence that workers respond to attention, symbolic rewards, and trust. Finally, they demonstrate through model of respect and incentives, relation between incentives and respect, and effect of respect to labor markets.

Conclusion is that, economic analysis is wrong to insist that all people always work for money only.

Questions:
What is the model in the paper?
What is the core concept and differences of attention, rewards, respect…?

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