Cited by 827Experimental Behavioral Economics StudiesSocial Power and Status DynamicsDecision-Making and Behavioral Economics

Effort for Payment: A Tale of Two Markets

Heyman, James, Ariely, Dan·2004·Psychological Science

Abstract

The standard model of labor is one in which individuals trade their time and energy in return for monetary rewards. Building on Fiske's relational theory (1992), we propose that there are two types of markets that determine relationships between effort and payment: monetary and social. We hypothesize that monetary markets are highly sensitive to the magnitude of compensation, whereas social markets are not. This perspective can shed light on the well-established observation that people sometimes expend more effort in exchange for no payment (a social market) than they expend when they receive low payment (a monetary market). Three experiments support these ideas. The experimental evidence also demonstrates that mixed markets (markets that include aspects of both social and monetary markets) more closely resemble monetary than social markets.

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Crossref · 10.1111/j.0956-7976.2004.00757.x

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  • Behavioural economic and industrial/social psychology evidence suggests people find dignity and purpose in almost any job.

    “Behavioural economic research (Heyman and Ariely 2004) and systematic empirical evidence from industrial and social psychology (Schwartz 2015; Wrzesniewski et al. 1997) suggests that people find dignity and purpose in almost any job.”

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Authors
Heyman, J., & Ariely, D.
Affiliations
  • University of California, Berkeley (US)
  • Massachusetts Institute of Technology (US)
Corresponding author
Ariely, Dan
Venue
Psychological Science
Published
2004-11
Volume
15
Issue
11
Pages
787-793
ISSN
  • 0956-7976 (ISSN-L)
  • 1467-9280
OpenAlex
W2141729865
Cited by
827
References
30
Citations by year
2026: 11 · 2025: 35 · 2024: 25 · 2023: 29 · 2022: 48 · 2021: 63 · 2020: 39 · 2019: 36 · 2018: 59 · 2017: 60 · 2016: 67 · 2015: 60 · 2014: 54 · 2013: 60 · 2012: 43
FWCI
16.22
Type
journal article
Language
en
Open access
closed
Locations
  • Psychological Science (publishedVersion)
  • PubMed (publishedVersion)
  • UST Research Online (University of St. Thomas - Minnesota) (submittedVersion)
Topics
  • Social Sciences › Safety Research › Experimental Behavioral Economics Studies
  • Social Sciences › Sociology and Political Science › Social Power and Status Dynamics
  • Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
Keywords
effort, payments, money market, social market, relational theory, compensation, mixed markets
MeSH terms
Attitude, Employment, Humans, Motivation, Psychological Theory, Social Behavior, Socioeconomic Factors

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