On the psychological motives of economic performance

Victor Gonzalez Jimenez

Research output: ThesisDoctoral ThesisScientific

416 Downloads (Pure)

Abstract

This dissertation consists of four chapters in behavioral economics. Chapters 2 and 3 study the psychological effects of poverty and low social status, and their influence on individual attainment and economic performance. The main message of these chapters is that disadvantaged individuals in the society, may exhibit suboptimal economic performance due to the psychological component associated to their position in the society, rather than for their abilities or their material constraints.

Chapters 4 and 5, study incentive schemes that exploit behavioral biases to motivate the individual. The idea is to design cost-efficient contracts, whose novelty does not rely on the monetary incentives that they deliver, but on the usage of psychological regularities at the benefit of the employer. The contract studied in Chapter 4 features the formation of reference points through the elicitation of a production threshold. This contract takes advantage of the psychological loss that the individual feels from falling short of her target. The contract studied in Chapter 5, exploits the regularity that individuals overweight small probabilities, by implementing random performance evaluations. These incentives deliver higher economic outcomes, than standard pay-for-performance contracts.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Noussair, Charles, Promotor
  • Dalton, Patricio, Co-promotor
Award date8 Dec 2017
Place of PublicationTilburg
Publisher
Print ISBNs978 90 5668 541 6
Publication statusPublished - 2017

Fingerprint

Psychological
Economic performance
Regularity
Incentive schemes
Reference point
Behavioral biases
Poverty
Monetary incentives
Pay-for-performance
Economics
Employers
Incentives
Performance evaluation
Performance contracts
Efficient contract
Social status
Costs
Novelty

Cite this

Gonzalez Jimenez, V. (2017). On the psychological motives of economic performance. Tilburg: CentER, Center for Economic Research.
Gonzalez Jimenez, Victor. / On the psychological motives of economic performance. Tilburg : CentER, Center for Economic Research, 2017. 192 p.
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Gonzalez Jimenez, V 2017, 'On the psychological motives of economic performance', Doctor of Philosophy, Tilburg University, Tilburg.

On the psychological motives of economic performance. / Gonzalez Jimenez, Victor.

Tilburg : CentER, Center for Economic Research, 2017. 192 p.

Research output: ThesisDoctoral ThesisScientific

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AB - This dissertation consists of four chapters in behavioral economics. Chapters 2 and 3 study the psychological effects of poverty and low social status, and their influence on individual attainment and economic performance. The main message of these chapters is that disadvantaged individuals in the society, may exhibit suboptimal economic performance due to the psychological component associated to their position in the society, rather than for their abilities or their material constraints. Chapters 4 and 5, study incentive schemes that exploit behavioral biases to motivate the individual. The idea is to design cost-efficient contracts, whose novelty does not rely on the monetary incentives that they deliver, but on the usage of psychological regularities at the benefit of the employer. The contract studied in Chapter 4 features the formation of reference points through the elicitation of a production threshold. This contract takes advantage of the psychological loss that the individual feels from falling short of her target. The contract studied in Chapter 5, exploits the regularity that individuals overweight small probabilities, by implementing random performance evaluations. These incentives deliver higher economic outcomes, than standard pay-for-performance contracts.

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Gonzalez Jimenez V. On the psychological motives of economic performance. Tilburg: CentER, Center for Economic Research, 2017. 192 p. (CentER Dissertation Series).