February 07, 2024
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Posted by NCID

Claude Raisaro,a Postdoctoral Fellow in the Department of Economics at Stockholm School of Economics, visited the NCID to give a seminar as part of the Job Market entitled "Incentives justifying nonconformity: experimental evidence from motortaxi organizations in Uganda".

This paper studies whether economic incentives may be more powerful when they help justify choices that have social image costs among peers. 

Incentive evidence is provided that speeding is considered admirable among co-workers. 

It is shown that drivers are more likely to accept economic incentives when they can be used as a justification. 

Furthermore, it is found that randomly offering visible incentives with justification properties is twice as effective in promoting compliance with speed regulation relative to private incentives, and has a positive effect on driver productivity.

This work illustrates that they can also reduce the social image costs of defying peer norms by achieving the same behavioural change with smaller but visible monetary incentives.