Mohnen, Alwine; Pokorny, Kathrin; Sliwka, Dirk - Universität <Köln> / Seminar für Allgemeine … - 2008
We provide an explanation for peer pressure in teams based on inequity aversion. Analyzinga two-period model with two agents, we find that the effect of inequity aversion stronglydepends on the information structure. When contributions are unobservable, agents act as ifthey were purely selfish....