Intrinsic Motivation and Extrinsic Incentives

According to social psychologists and so- ciologists, a norm is a somewhat general rule of voluntary behavior. Examples range from the very general norm of reciprocity—treat others as they treat you—to more specific rules such as tip 15 percent and face the front in a crowded elevator. Why do people adhere to norms? Econo- mists have available four answers: (i) Adher- ence is costless relative to violation and so, why not? (ii) Adherence is immediately per- sonally beneficial because it permits coordi- nation (e.g., bear to the right in a crowded walkway), (iii) Adherence, while immedi- ately costly, leads to better treatment by others than will violation, (iv) Adherence is desirable per se.