Dan Ariely research in India Madurai, when the task called for rudimentary cognitive skills, larger rewards led to poorer performance. but as ing as the task involved only mechanical skill, bonuses worked as they would be expected the higher the pay, the better the performance

- Extrinsic - The Carrot (Financial Reward) and The Stick (A scolding from your boss)

In his first free-choice experiment, he asked both groups – the control and the treatment – to work on a Soma Cube puzzle. The treatment group were given a $1 reward for every puzzle they completed, whereas the control group were given nothing – they worked on the puzzle without any expectation of a reward. When all participants were then put in... See more