Bonuses generate more heat than light

[image error]The engaging behavioural economist Dan Ariely has just become a columnist for Wired UK and in his first article he describes how the promise of performance-related pay often backfires leading people to do more but perform worse.

To see the effect of bonuses on performance, Nina Mazar (assistant professor of marketing, Toronto University), Uri Gneezy (professor of economics and strategy, University of California, San Diego), George Loewenstein (professor of economics, Carnegie Mellon...