Existing literature has researched the complex relationship through different lenses, yet significant gaps persist, particularly concerning the effects of financial incentives on intrinsic and extrinsic motivation. These gaps leave critical questions unanswered regarding the influence of financial rewards on individuals' focus and performance across different contexts. Against this backdrop, the current study seeks to delve deeper into these unresolved issues. Williams et al. address the following research questions: How do financial rewards affect individuals' intrinsic and extrinsic motivation? What is the extent of their influence on participants' focus and performance in various tasks and environments? 

Drawing from a pool of sixty-seven undergraduates from the University of Newcastle, Australia, the study employs a meticulously crafted computerized task known as the Buckets game. Within this immersive environment, participants are tasked with identifying the target bucket amidst a sea of distractors, their performance closely monitored to discern the impact of financial rewards. Through a comprehensive analysis of post-error adjustments (the changes in decision-making strategies or behavior following errors) and response times (the duration between stimulus presentation and participants' responses), the study reveals intriguing patterns. Specifically, it demonstrates that paid players exhibit heightened focus and motivation to achieve game goals compared to their unpaid counterparts, suggesting that financial incentives play a significant role in shaping participants' cognitive processes and performance outcomes in goal-oriented tasks.

For educators, parents, and students alike, the study's findings offer invaluable guidance in navigating motivation and performance. By shedding light on the impact of financial incentives on goal motivation and cognitive control, the study underscores the importance of employing tailored incentives to enhance performance outcomes. Teachers and parents can leverage these insights to craft effective motivational strategies, fostering a conducive environment for goal attainment and cognitive development. Imagine a scenario where a high school student is struggling to stay focused and motivated to complete her assignments. Her teacher has been exploring different approaches to enhance student engagement and performance in her class. Her teacher introduces a reward system where students earn points for completing assignments on time, participating actively in class discussions, and achieving high scores on assessments. These points can be redeemed for various rewards, such as extra credit and classroom privileges. As a result, the student becomes more engaged and motivated to excel in class. She diligently completes her assignments, participates enthusiastically in discussions, and strives to achieve higher scores on her tests and quizzes to earn more points. The structured incentive system not only enhances her performance but also fosters a positive learning environment where students are empowered to take ownership of their academic goals. The study's insights on leveraging tailored incentives to enhance goal motivation and cognitive control have a direct and positive impact on her academic performance and overall learning experience. Moreover, the study's implications resonate with EPIC's research endeavors, such as the influence of incentives on cognitive processes and performance outcomes. EPIC’s future directions could include delving into factors influencing extrinsic and intrinsic motivations.

To learn more about this study, please check it out here: https://www.cambridge.org/core/journals/judgment-and-decision-making/article/posterror-recklessness-and-the-hot-hand/35D4C47158BB026456F90A018AA400BD

This post is written by Tristin Yun. 

Reference:

Williams, P., Heathcote, A., Nesbitt, K., & Eidels, A. (2016). Post-error recklessness and the hot hand. Judgment and Decision making, 11(2), 174-184.