Motivation Crowding Theory

Motivation Crowding Theory suggests that external rewards or punishments can sometimes reduce, or "crowd out," a person’s intrinsic motivation to perform a task. For example, paying someone extra to volunteer might decrease their genuine enjoyment or sense of personal achievement. Conversely, in some cases, external incentives can enhance motivation. The theory highlights that the impact of external factors depends on how they are perceived and the context, emphasizing the importance of aligning incentives carefully to support desired behaviors without undermining people’s internal drive.