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In a remarkable gift exchange experiment, results showed that rewarding workers with a surprise gift of a bottle of wine resulted in greater effort levels
In a remarkable gift exchange experiment, results showed that rewarding workers with a surprise gift of a bottle of wine resulted in greater effort levels than an equivalent increase in monetary payments. In fact, there are companies devoted to delivering bonuses in the form of gifts rather than cash. Explain how this is a violation of standard economic theory. How do you explain this?
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