Abstract
Incentives are frequently used by governments and employers to encourage cooperation. Here, we investigated the effect of centralized incentives on cooperation, firstly in a behavioral study and then replicated in a subsequent neuroimaging (fMRI) study. In both studies, participants completed a novel version of the Public Goods Game, including experimental conditions in which the administration of centralized incentives was probabilistic and incentives were either of a financial or social nature. Behavioral results showed that the prospect of potentially receiving financial and social incentives significantly increased cooperation, with financial incentives yielding the strongest effect. Neuroimaging results showed that activation in the bilateral lateral orbitofrontal cortex and precuneus increased when participants were informed that incentives would be absent versus when they were present. Furthermore, activation in the medial orbitofrontal cortex increased when participants would potentially receive a social versus a financial incentive. These results speak to the efficacy of different types of centralized incentives in increasing cooperative behavior, and they show that incentives directly impact the neural mechanisms underlying cooperation.
Highlights
Cooperation is an integral characteristic of societies that function efficiently, with societal betterment generally best served by a willingness for individuals to make choices that benefit the public good, even though this may involve some personal sacrifice
Results of our first multilevel model analysis including the presence of probabilistic incentives and endowments as within-subject variables revealed a significant main effect of the presence of probabilistic incentives on the percentage of tokens contributed to the group pot, with participants contributing significantly more when incentives were present compared to absent (F(1, 3827) = 752.7, p < 0.001; Incentives present: M = 0.62, SE = 0.02, Incentives absent: M = 0.36, SE = 0.02)
The results of Study 1 demonstrated that both the possibility of receiving financial and social incentives increased cooperation levels as compared to when no incentives were present, with financial incentives having a larger effect on contribution amounts than social incentives
Summary
Cooperation is an integral characteristic of societies that function efficiently, with societal betterment generally best served by a willingness for individuals to make choices that benefit the public good, even though this may involve some personal sacrifice. In the midst of the COVID-19 pandemic, individuals who wear masks effectively aim to cooperate in decreasing the spread of the disease and protect others as well. Individuals who refuse to wear masks in public spaces will still benefit from the cooperation and protection granted by others while not contributing themselves. Free-riding behavior is detrimental for society, as the benefits of slowing down contamination rates can only be achieved if everyone, or at least a critical mass of a population, decides to cooperate, and free-riding is often met with anger from those who are taken advantage of. Governments and institutions often employ incentives in order to guide behavior in societally beneficial directions. Governments sometimes offer subsidies or tax breaks to citizens who use public transportation in order to stimulate their usage, but, availing of public transportation without an appropriate ticket can lead to a fine, thereby discouraging
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
