Journal of Applied Economic Research
ISSN 2712-7435
Motivation of Individual Economic Activities from the Position of the new Institutional Economics
Shcherbakov I.V.
Abstract
The article compares the main ideas of motivation of the individual's economic activity from the standpoint of the neoclassical concept and the new institutional economics. The features of the structure of economic activity from the standpoint of the new institutional economy are assessed. It is shown that the new institutional economics considers economic activity as a kind of human activity in general. To carry out the economic activities of an individual, not only limited resources, but institutional conditions, capacities and experience are needed. The theory of transaction costs allows one to take into account the psychological aspects of a person's economic behavior. The purpose of the work is to show that it is the new institutional economy that creates effective theoretical and methodological prerequisites for studying the motivation of a person's economic activity. On the basis of these prerequisites, it is possible to develop an integral economic concept of motivation for human economic activity. The research method consists in using the transactional approach to identify and substantiate the high degree of conjugation of the human model in the new institutional economics and the psychological concept of self-determination. Based on the congruence of these models, a methodological approach is proposed to represent the motivation of a person's economic activity as internalization of existing economic incentives. The main economic incentives are: wages, institutions and specification of property rights. Each economic stimulus has its own level of internalization. The dominance of little internalized stimuli forms an external motivation for economic activity, and the predominance of highly internalized stimuli forms the internal one. The process of transformation of external motivation into the internal motivation of economic activity becomes a regularity in the evolution of motivation. The transformation of the motivation of a person's economic activity creates new approaches to explaining many economic phenomena and processes. The proposed methodological approach allows us to consider the motivation of economic activity not only as a construct that explains, regulates and predicts the behavior of an individual. In the context of increasing complexity of attracting exogenous resources, increasing the motivation of economic individuals becomes the key immanent factor of economic development. Motivation becomes an effective means of increasing the effectiveness of such specific assets as the ability and accumulated experience of a person. On the basis of the proposed approach, it is possible to develop directions for the development of institutions, improve the structure of the main economic incentives, and also increase the effectiveness of economic incentive and authorization systems.
Keywords
External and internal motivation; wages; agency costs; institutions; internalization; motivation; incentive structure; property rights; transaction costs
Highlights
References
1. North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
2. Eggertsson, T. (1990). Economic Behavior and Institutions. Cambridge University Press.
3. Kahnman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux.
4. Sahlins, M. (1972). Stone Age Economics. New York, de Gruyter.
5. Chayanov, A.V. (1925). Organizatsiia krest'ianskogo khoziaistva [Peasant Farm Organization]. Moscow, Tsentral'noe tovarishchestvo «Kooperativnoe izdatel'stva» [Cooperative Publishing House].
6. Ol'sevich, Iu.Ia. (2009). Psikhologicheskie osnovy ekonomicheskogo povedeniia [Psychological Foundations of Economic Behavior]. Moscow, INFRA-M.
7. Becker, G. (1978). The Economic Approach to Human Behavior. University of Chicago Press.
8. Alchian, A.A. (1958). Uncertainty, Evolution and Economic Theory. Journal of Political Economy, Vol. 58, No. 3, 211–221.
9. Akerlof, G., Kranton, R. (2010). Identity Economics: How Our Identities Shape Our Work, Wages, and Well-Being. Princeton University Press
10. Menard, C. (1990). L'économie des organisations. Paris, La Découverte.
11. Foster, J. (1987). Evolutionary macroeconomics. London.
12. Knight, F. (1921). Risk, uncertainty and profit. Scholar's Choice.
13. Asmus V.F. (1976). Metafizika Aristotelia (Metaphysics of Aristotle). Aristotel'. Soch. [Aristotle. Works]. Moscow, Mysl', Vol. 1, 47–48
14. Hodgson, G.M. (1993). The Economics of Institutions. A Manifesto for a Modern Institutional Economics. Cambridge, Polity Press, Cambridge.
15. Deci, E.L. (1975). Intrinsic motivation. New York, Plenum Press.
16. Deci, E.L., Ryan, R.M. (1985). Intrinsic Motivation and Self-Determination in Human Behaviors. New York, Plenum Press.
17. Deci, E.L., Ryan, R.M. (1991). A motivational approach to self: integration in personality. Nebraska symposium on motivation 1990. Lincoln (Nb); London; University of Nebraska Press, Vol. 38, 237–288.
18. Berne, E. (1964). Games People Play: The Psychology of Human Relationships. Grove Press.
19. Commons, J.R. (1931). Institutional Economics. American Economics Review, Vol. 21, 648–657.
20. Milgrom, P., Roberts, J. (1992). Economics, Organization, and Management. Prentice-Hall.
21. Jensen, M.C., Meckling, W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, Vol. 3, No. 4, 305–360.
22. Jensen, M.C., Meckling, W.H. (1979). Rights and Production Functions: An Application to Labor-Managed Firms and Codetermination. Journal of Business, Vol. 52, 469–506.
23. Coase, R. (1988). The Firm, the Market, and the Law. University of Chicago Press.
24. Searle, J.R. (2005). What is an Institution? Journal of Institutional Economics. Vol. 1, No. 1, 1-22.
25. Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Harvard University Press.
About Authors
Shcherbakov Igor Victorovich – Candidate of Economic Sciences, Doctoral Student, Department of Philosophy and Methodology of Economics, Lomonosov Moscow State University, Moscow, Russia, (119991, Moscow, Leninskie Gory, 1, str. 46); e-mail: ig063@mail.ru.
For citation
Shcherbakov I.V. Motivation of Individual Economic Activities from the Position of the New Institutional Economics. Bulletin of Ural Federal University. Series Economics and Management, 2017, Vol. 16, No. 5, 727-743. DOI: 10.15826/vestnik.2017.16.5.035.
Article info
Received July 17, 2017; Accepted August 29, 2017.
DOI: http://dx.doi.org/10.15826/vestnik.2017.16.5.035
Download full text article:
~559 KB, *.pdf
(Uploaded
05.11.2017)
Created / Updated: 2 September 2015 / 20 September 2021
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
Contact us
Rector's Office
Rector, Dr. Victor Koksharov
Tel. +7 (343) 375-45-03, e-mail: rector@urfu.ru
Vice-Rector for International Relations, Dr. Maxim Khomyakov
Tel. +7 (343) 375-46-27, e-mail: Maksim.Khomyakov@urfu.ru