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motivation crowding

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    Incentive Design Entry #0376

    Why paying for blood donations reduced supply

    Adding money to a voluntary act can reduce how often it is performed, because the payment replaces the reason people were doing it at all.

    Novice
    The hidden part #0376

    A payment does not only add a motive. It can delete the one that was already there.

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    Incentive Design Entry #0396

    Why volunteers outperform paid workers on some tasks

    Payment does not add to an existing reason for doing something. It can replace it, and the replacement is often smaller than what it displaced.

    Novice
    The hidden part #0396

    A small payment does not sit alongside the original reason for doing something. It replaces it, and then has to compete on its own terms.

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