Can a reward of an uncertain magnitude be more motivating than a reward of a certain magnitude? This research documents the motivating-uncertainty effect and specifies when this effect occurs. People invest more effort, time, and money to qualify for an uncertain reward (e.g., a 50% chance at $2 and a 50% chance at $1) than a certain reward of a higher expected value (e.g., a 100% chance at $2). This effect arises only when people focus on the process of pursuing a reward, but not when they focus on the outcome (the reward itself). When the focus is on the process of reward pursuit, uncertainty generates positive experience such as excitement and hence increases motivation. Four studies involving real rewards lend support to the motivating- uncertainty effect. This research carries theoretical implications for research on risk preference and motivation and practical implications for how to devise cost-efficient consumer incentive systems.

Luxi Shen is Assistant Professor of Marketing, Chinese University of Hong Kong. Ayelet Fishbach is the Jeffrey Breakenridge Keller Professor of Behavioral Science and Marketing and Christopher K. Hsee is the Theodore O. Yntema Professor of Behavioral Science and Marketing, University of Chicago, Chicago, IL 60637, USA. This research is based on the first author’s doctoral dissertation under the supervision of the second and third authors.