London School of Economics and Political Science — Economica Coase Lecture

Ernst Fehr uses experimental evidence to examine the psychological consequences of authority in economic interactions. Although power pervades political, social and economic life, its motivational origins and effects are not fully understood. The lecture investigates why people want to exercise authority, how possessing it can strengthen motivation, and how being deprived of it can undermine motivation. These findings connect the allocation of decision-making power with incentives, cooperation and behaviour inside organisations.