Revisiting the effect of incentivization on cognitive reflection: A meta-analysis

Eldad Yechiam, Dana Zeif

Research output: Contribution to journalArticlepeer-review

Abstract

The effect of performance-based incentives on judgment biases is a controversial issue. A recent extensive meta-analysis of Brañas-Garza et al. (2019, https://doi.org/10.1016/j.socec.2019.101455) found no effect of incentives on performance in the cognitive reflection test (CRT), a test commonly used for assessing heuristic versus deliberative judgments. We conducted a meta-analysis of studies that directly compared an incentive versus no-incentive conditions (n = 2836) and found a small positive effect of incentivization (Cohen's d =.21) on CRT performance. In addition, we re-examined the Brañas-Garza et al. (2019) dataset (n = 39,385), taking into consideration not only whether incentivization was used but also the nominal and fiscal size of the incentive. The results show that surprisingly when including only studies that used monetary incentives, the effect of incentivization and incentive size are significant, even when taking into consideration other aspects of the studies. The results thus suggest a small but robust effect of incentives on judgment biases.

Original languageEnglish
Article numbere2286
JournalJournal of Behavioral Decision Making
Volume36
Issue number1
DOIs
StatePublished - Jan 2023

Keywords

  • attention
  • cognitive reflection test
  • heuristics
  • incentives
  • judgment

All Science Journal Classification (ASJC) codes

  • General Decision Sciences
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Sociology and Political Science
  • Strategy and Management

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