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An experimental test of whether financial incentives constitute undue inducement in decision-making

Economics

An experimental test of whether financial incentives constitute undue inducement in decision-making

S. Ambuehl

This research examines the controversial notion of 'undue inducement' in transactions like research participation and egg donation, revealing that higher incentives can actually align with rational decision-making. Conducted by Sandro Ambuehl, the study suggests that capping incentives may not be necessary, as biases in decision-making might not necessarily worsen outcomes.

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Playback language: English
Abstract
Laws worldwide restrict incentives for transactions like research participation or egg donation due to concerns about "undue inducement" – the hypothesis that incentives distort decision-making. Two experiments (n=671 and n=406) tested this, one involving insect consumption. Higher incentives biased information search; participants sought encouragement. However, this behavior is consistent with Bayesian rationality. While some participants made poor decisions, incentives did not worsen them, suggesting that capping incentives rather than prohibiting transactions at higher levels may be unwarranted.
Publisher
Nature Human Behaviour
Published On
Mar 08, 2024
Authors
Sandro Ambuehl
Tags
undue inducement
decision-making
incentives
research participation
egg donation
Bayesian rationality

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