Why we are happy to do social things, but not when we are paid to do them
Several years ago the AARP asked lawyers to participate in a program where they would offer their services to needy employees for a discounted price of $30/hour. No dice. When the program manager instead asked if they’d offer their services for free, the lawyers overwhelmingly said they would participate. Ariely and Heyman conducted the following experiment. Subjects were asked to use a computer to drag circles from one side of the screen into a square. They were instructed to drag as many circles as they could in 5 minutes (Ariely notes that this is very boring). The rewards given for the task were: $5, $0.50, and zero Market norms drive out social norms. To follow up on the experiment, they ran it again, this time with the rewards of a box of Godiva chocolates (worth ~$5), a Snickers bar (worth ~$1), and zero Conclusion: Small gifts don’t constitute a market norm, and keep things in the social realm. One more variation: The experimenters described the gifts as a $5 box of chocolates and a $0.50 candy bar. The results were the same as with the cash rewards. They reacted to explicitly priced gifts in exactly the same way they reacted to cash. "People are willing to work free, and they are willing to work for a reasonable wage, but offer them just a small payment and they will walk away." via – Predictably Irrational: The Hidden Forces That Shape Our Decisions by Dan Ariely

Never mention money when you want a thing to be done in the best way!
Comment by Kamelia — January 27, 2009 @ 12:36 pm
This is fascinating!
Comment by Brad — January 27, 2009 @ 1:25 pm
Being paid “peanuts” for a job is an insult to a person’s dignity, specially if he does his work well. This is one reason people would rather work for charity rather than be “used”.
Comment by mizdi — January 27, 2009 @ 1:51 pm
This raises 2 key questions: (a) in the AARP example, how did the service recipient’s perceived value in the services change when they became free? (b) when talking a service exchange, what is the quality differential in service (or action) delivery in free vs. paid scenario? Getting someone simply to “do” something is only part of the answer…
Comment by sue — January 27, 2009 @ 2:07 pm