Monetary Rewards and Framing of the Problem in Crowdsourcing : Effects on Participation

Abstract: The purpose of this study is to explore if monetary reward negatively affects people’s willingness to participate in crowdsourcing projects and to see how the relationship between monetary rewards and the framing of the crowdsourcing problem affects participation in crowdsourcing contests. A two-phase data collection method is used to answer these questions; a survey to identify the people who had participated in crowdsourcing projects and a focus group with the suitable candidates to discuss the research questions further. According to our findings, framing a crowdsourcing project as a good cause is not a strong enough motivation to convince people to participate in a challenge. People usually look for a benefit (financial or personal) in a challenge when deciding to participate. On the other hand, offering a reward for a crowdsourcing contest that is held for a good cause increases people’s willingness to participate. Potential participants react differently to a reward that is larger than usual. While more experienced participants feel extra motivated by large rewards, those who have less experience in crowdsourcing projects are more likely to see the large reward as a threat, decreasing their chances of winning, thus, reducing their willingness to participate in those challenges.