Psychology of Economic Decision-Making
The overjustification effect occurs when an external incentive, such as money or rewards, decreases a person's intrinsic motivation to perform a task. This phenomenon highlights how extrinsic rewards can undermine the internal satisfaction derived from an activity, leading individuals to attribute their engagement to the rewards rather than their inherent interest. Understanding this effect is crucial for creating effective commitment devices and strategies for self-regulation as well as for managing employee motivation in organizational settings.
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