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The third hidden cost of enforcement: extrinsic motivators (monitoring, penalties) can destroy intrinsic motivation. Once people are paid or punished for behaviour, they stop doing it for its own sake. AoE preserves intrinsic motivation by never introducing extrinsic controls.
Blood donation rates dropped when countries introduced payment—paying 'crowded out' the intrinsic motivation to help. PSC pay-forward rates exceed loan repayment rates because contribution remains voluntary.
AoE Section 4.3