Reward for Good Performance Works Better Than Punishment for Mistakes: Economic Explanation

Authors

Olga Kosheleva, The University of Texas at El PasoFollow
Julio Urenda, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

5-2020

Comments

Technical Report: UTEP-CS-20-40

Abstract

How should we stimulate people to make them perform better? How should we stimulate students to make them study better? Many experiments have shown that reward for good performance works better than punishment for mistakes. In this paper, we provide a possible theoretical explanation for this empirical fact.