Source Dependence in Effort Provision

Yiting CHEN, Songfa ZHONG*

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

Abstract

We examine source dependence in the setting of effort provision. Our first experiment elicits preference over uncertain piece rate schemes to perform a real-effort task. Our second experiment elicits effort after receiving an uncertain gift. We vary the probability of winning and the familiarity of natural sources of uncertainty. We show that subjects are averse to unfamiliar sources for moderate or high probability, but less so for low probability. Moreover, effort exhibits more insensitivity to the probability under the unfamiliar source compared with the familiar source. Our findings support the validity and generalizability of source dependence in applied settings.
Original languageEnglish
JournalInternational Economic Review
Early online date7 Mar 2024
DOIs
Publication statusE-pub ahead of print - 7 Mar 2024

Bibliographical note

Publisher Copyright:
© 2024 The Authors. International Economic Review published by Wiley Periodicals LLC on behalf of the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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