Can monetary incentives overturn fairness-based decisions?

Fairness norms and resulting behaviours are an important prerequisite for cooperation in human societies. At the same time, financial incentives are commonly used to motivate social behaviours, yet it remains unclear how financial incentives affect fairness-based behaviours. Combining a decision paradigm from behavioural economics with hierarchical drift-diffusion modelling, we investigated the effect of different financial incentives on two types of fairness-based decisions in four experimental groups. In two groups, participants divided points between themselves and a disadvantaged person, inciting fairness-based compensation behaviour, in two other groups they divided points between themselves and a fairness violator, inciting fairness-based punishment behaviour. In addition, each group received financial incentives that were either aligned or in conflict with the respective fairness-based behaviour. This design allowed us to directly investigate how different incentives shape the cognitive mechanism of fairness-based decisions and whether these effects are comparable across different fairness domains (fairness-based punishment versus fairness-based compensation). Results showed that offering conflicting incentives diminished fairness-congruent decision behaviour and rendered the fairness-congruent decision process less efficient. These findings demonstrate that financial incentives can undermine fairness-based behaviour, and thus are relevant for the development of incentive schemes aimed at fostering cooperative behaviour.

The bright and dark sides of egoism.

Despite its negative reputation, egoism - the excessive concern for one's own welfare - can incite prosocial behavior. So far, however, egoism-based prosociality has received little attention. Here, we first provide an overview of the conditions under which egoism turns into a prosocial motive, review the benefits and limitations of egoism-based prosociality, and compare them with empathy-driven prosocial behavior. Second, we summarize studies investigating the neural processing of egoism-based prosocial decisions, studies investigating the neural processing of empathy-based prosocial decisions, and the small number of studies that compared the neural processing of prosocial decisions elicited by the different motives. We conclude that there is evidence for differential neural networks involved in egoism and empathy-based prosocial decisions. However, this evidence is not yet conclusive, because it is mainly based on the comparison of different experimental paradigms which may exaggerate or overshadow the effect of the different motivational states. Finally, we propose paradigms and research questions that should be tackled in future research that could help to specify how egoism can be used to enhance other prosocial behavior and motivation, and the how it could be tamed.

Financial incentives facilitate stronger neural computation of prosocial decisions in lower empathic adult females.

Financial incentives are commonly used to motivate behaviors. However, there is also evidence that incentives can impede the behavior they are supposed to foster, for example, documented by a decrease in blood donations if a financial incentive is offered. Based on these findings, previous studies assumed that prosocial motivation is shaped by incentives. However, so far, there is no direct evidence showing an interaction between financial incentives and a specific prosocial motive. Combining drift-diffusion modeling and fMRI, we investigated the effect of financial incentives on empathy, i.e., one of the key motives driving prosocial decisions. In the empathy-alone condition, participants made prosocial decisions based on empathy. In the empathy-bonus condition, they were offered a financial bonus for prosocial decisions, in addition to empathy induction. On average, the bonus enhanced the information accumulation in empathy-based decisions. On the neural level, this enhancement was related to the anterior insula, the same region that also correlated with empathy ratings. Moreover, the effect of the financial incentive on anterior insula activation was stronger the lower a person scored on empathy. These findings show that financial incentives enhance prosocial motivation in the absence of empathy.