When bonuses backfire: an inaction inertia analysis of procrastination induced by a missed opportunity

An inaction inertia analysis of procrastination was used to generate the prediction that using bonuses to encourage early task completion will have two opposing effects, encouraging early task completion by some but also inducing procrastination for those who miss the bonus. Study 1 showed that the addition of bonuses for early completion produced both of these effects and also led to overall task completion rates that were either equal to (large bonus) or actually less than (medium and small bonuses) those obtained by simply establishing a completion deadline with no bonus. In Study 2, a lottery methodology was used to manipulate the size of a missed bonus for all participants. Even under these conditions of reduced personal responsibility the larger missed bonus led to increased procrastination as predicted by the inaction inertia analysis. Possible mediating processes based on anticipated regret and perceived fairness were discussed. Copyright © 2007 John Wiley & Sons, Ltd.