Cf. Camerer et Rm. Hogarth, The effects of financial incentives in experiments: A review and capital-labor-production framework, J RISK UNC, 19(1-3), 1999, pp. 7-42
We review 74 experiments with no, low, or high performance-based financial
incentives. The modal result has no effect on mean performance (though vari
ance is usually reduced by higher payment). Higher incentive does improve p
erformance often, typically judgment tasks that are responsive to better ef
fort. Incentives also reduce "presentation" effects (e.g., generosity and r
isk-seeking). Incentive effects are comparable to effects of other variable
s, particularly "cognitive capital" and task "production" demands, and inte
ract with those variables, so a narrow-minded focus on incentives alone is
misguided. We also note that no replicated study has made rationality viola
tions disappear purely by raising incentives.