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Effort for Payment: A Tale of Two Markets
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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“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.”
From Public Policy in a Time of Crisis: A Framework for Evaluating Canada’s COVID-19 Income Support Programs (2021) · cites this paper as Heyman and Ariely 2004
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Metadata
- 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
- 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
- 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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