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Pro-social Motivations, Externalities and Incentives *

Abstract : This paper analyzes how pro-social motivations shape the relationship between incentives and inequality. I consider a principal who offers individual rewards to a group of agents to induce them to exert effort and to coordinate at least-cost. The agents value the payoffs of the other agents, and they are averse to inequality. My analysis highlights that pro-social motivations have an a priori ambiguous effect on inequality in the reward distribution. Despite this initial ambiguity, I show that the rewards are more unequal and lower when the agents have pro-social preferences. The model delivers empirical implications for intervention programs supporting the adoption of new health or agricultural technologies.
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Preprints, Working Papers, ...
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https://hal.inrae.fr/hal-03212888
Contributor : Laurent Garnier <>
Submitted on : Friday, April 30, 2021 - 9:09:05 AM
Last modification on : Tuesday, June 1, 2021 - 2:40:29 PM
Long-term archiving on: : Saturday, July 31, 2021 - 6:16:59 PM

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WP 2021-06.pdf
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Distributed under a Creative Commons Attribution - NonCommercial - NoDerivatives 4.0 International License

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  • HAL Id : hal-03212888, version 1

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Raphael Soubeyran. Pro-social Motivations, Externalities and Incentives *. 2021. ⟨hal-03212888v1⟩

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