Money is a motivator, people try harder and longer
Simple vs Complex
In simple tasks big bonuses help, simple effort-needing tasks
In complex cognitive tasks bonuses don't work very well (Bonus as a source of stress or distraction) -> "Maybe I wont make it and get the big bonus" Can lead to unethical behavior
In complex tasks: Intrinsic better, just pay enough
Bonuses are dangerous! -> High stakes may lead to big mistakes
Comments
Bonuses are good when task requires effort, but not skill/problemsolving.