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

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Effort for Payment: A Tale of Two Markets

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

DOI 10.1111/j.0956-7976.2004.00757.x

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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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Authors: Heyman, J., & Ariely, D.
Affiliations: University of California, Berkeley (US)
Massachusetts Institute of Technology (US)
Corresponding author: Ariely, Dan
ORCID: Ariely, Dan
Venue: Psychological Science
Publisher: SAGE Publications
Published: 2004-11
Volume: 15
Issue: 11
Pages: 787-793
ISSN: 0956-7976 (ISSN-L)
1467-9280
DOI: 10.1111/j.0956-7976.2004.00757.x
OpenAlex: W2141729865
Semantic Scholar: 5790f99f78e1b9d93ac121fa70c32e936e45db7e
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
Update notices: expression_of_concern (2021-07-23)
Open access: closed
Licence: journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
Locations: Psychological Science (publishedVersion)
PubMed (publishedVersion)
UST Research Online (University of St. Thomas - Minnesota) (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › 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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Effort for Payment: A Tale of Two Markets

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