More Is Not Better: Two Failures of Incentive Theory.

Those who design incentives generally assume that "more is better." To assess potential influence on enlistment in the Navy, two nationwide interview surveys were conducted of representative samples (each n> 850) of civilian males, ages 16-22 years. The first survey employed 17 different incentives; the second employed 15. Responses on a 5-point scale for single incentives and sets of 2 and 3 incentives were compared. Comparisons were also made of incentives differing in magnitude: $1,000 versus $3,000; 2 years versus 4 years of free college after 4 years of service; and 10% versus 25% of base pay for exceptional performance. No significant changes were found in disposition to enlist when either the number or the absolute magnitude of incentives was increased. Possible explanations are discussed. [ABSTRACT FROM AUTHOR]

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