1. The Overjustification Effect

The Overjustification Effect occurs when an external incentive like money or prizes decreases a person’s intrinsic motivation to perform a task. For example, children who enjoyed drawing as a pastime may lose interest if they're given rewards for doing it. The activity may start to feel like a job, rather than something they do out of pure interest, thereby diminishing their natural desire to engage in it.

2. Cognitive Evaluation Theory

Introduced by psychologists Edward Deci and Richard Ryan, Cognitive Evaluation Theory suggests that external rewards can affect intrinsic motivation depending on how the reward is perceived. If people perceive a reward as controlling, it can decrease their intrinsic motivation, but if they see it as informative, it can enhance it. For instance, a bonus given in recognition of hard work can be motivating, but a bonus given with strict terms might have the opposite effect.

3. Fatigue Avoidance Theory

Fatigue Avoidance Theory posits that people are driven by the need to avoid mental or physical fatigue. Individuals might procrastinate or delegate tasks simply to avoid the fatigue associated with doing them. This theory is often used to explain why people might opt for leisure over work, despite the long-term benefits of completing the tasks at hand.

4. The Insufficient Justification Effect

The Insufficient Justification Effect occurs when individuals justify an action of low intrinsic value by attributing it to an internal cause. For instance, if people are paid very little to perform a tedious task, they may convince themselves that they did it because they found it interesting. This cognitive dissonance can actually make people more dedicated to the task over time.

5. The Endowment Effect

According to the Endowment Effect, individuals place higher value on objects merely because they own them. This theory explains why people are often more motivated to keep what they already have rather than acquiring new things. For example, someone may value an old piece of furniture they inherited more than a new piece they could buy.

6. The Goal Gradient Hypothesis

First proposed by behavioral psychologist Clark Hull, the Goal Gradient Hypothesis states that people are more motivated to achieve a goal as they get closer to it. For example, runners often speed up as they near the finish line. This sense of nearing completion can heighten a person's motivation and effort towards achieving their goal.

7. Satiation Theory

Satiation Theory explains how repeated exposure to a reward can reduce its effectiveness over time. This is why variety is crucial in reward systems. If a child receives the same candy every time they complete a task, its motivational impact diminishes. Alternating different types of rewards can help maintain their effectiveness.

8. Temporal Motivation Theory

Temporal Motivation Theory (TMT) integrates aspects of psychology and economics to understand how people make decisions over time. According to TMT, the perceived value of a reward decreases the further away it is in time. This explains why people might prefer smaller immediate rewards over larger future ones.

• Immediate rewards are more tempting.
• Future rewards seem less tangible.

9. Intrinsic vs. Extrinsic Motivation

Intrinsic motivation comes from within, while extrinsic motivation relies on external rewards. Interestingly, extrinsic rewards can sometimes undermine intrinsic motivation. A common example is when hobbyists lose interest if they start getting paid for their hobby, making it feel like work instead of an enjoyable activity.

10. The Hedonic Treadmill Theory

The Hedonic Treadmill Theory suggests that people quickly return to a relatively stable level of happiness despite major positive or negative events. After the short thrill of receiving a reward culminates, the baseline level of satisfaction quickly returns. For example, winning the lottery might provide short-term happiness, but the long-term happiness level often remains unchanged.

11. The Halo Effect

The Halo Effect occurs when one positive characteristic of a person or thing leads to a biased perception of other characteristics. For instance, if someone is awarded 'Employee of the Month,' colleagues might perceive them as more competent in other areas as well. This can instill greater motivation among peers to work harder.

12. Expectancy Theory

Developed by Victor Vroom, Expectancy Theory states that motivation is determined by a combination of expectancy, instrumentality, and valence. If individuals believe their effort will lead to a desired performance and that performance will lead to a valuable reward, they will be motivated. For instance, a student is likely to study harder for an exam if they believe it will result in a good grade and future career opportunities.

13. Drive Reduction Theory

The Drive Reduction Theory posits that people are motivated to reduce the drives created by unmet needs. For example, thirst and hunger are drives that motivate individuals to drink and eat. Once these needs are satisfied, the drive is reduced, leading to a state of homeostasis.

14. The Scarcity Principle

People are more motivated to acquire something that is scarce or in limited supply. This principle explains why limited-time offers and exclusive memberships are effective in marketing. The perception of scarcity increases the item's perceived value and urgency to obtain it.

15. The Marshmallow Test

The famous Marshmallow Test conducted by psychologist Walter Mischel studied delayed gratification in children. Children who could wait for a larger reward instead of taking a smaller immediate one were found to have better life outcomes. This test underscores the importance of self-control and long-term planning in achieving larger rewards.

The Science of Rewards: 15 Lesser-Known Theories That Explain What Drives Us

• Understand the Overjustification Effect to avoid reducing intrinsic motivation.
• Learn from Cognitive Evaluation Theory to use rewards that enhance intrinsic motivation.
• Avoid tasks and fatigue by recognizing Fatigue Avoidance Theory.
• Use the Insufficient Justification Effect to motivate through internal justification.
• Recognize the value of what's owned through the Endowment Effect.
• Boost motivation as you near completion with the Goal Gradient Hypothesis.
• Introduce variety to rewards to combat the Satiation Theory effect.
• Balance immediate and future rewards by understanding Temporal Motivation Theory.
• Consider the implications of Intrinsic vs. Extrinsic Motivation.
• Be aware of the quick return to a stable happiness level with the Hedonic Treadmill Theory.
• Capitalize on one positive trait affecting overall perception with the Halo Effect.
• Understand that Expectancy Theory enhances effort based on potential outcomes.
• Reduce drives to reach homeostasis, as suggested by Drive Reduction Theory.
• Leverage the Scarcity Principle to boost perceived value and urgency.
• Develop self-control and long-term planning as exemplified by the Marshmallow Test.