previous research, we have shown that financial incentives can be used to find a way out of such performance traps. Here we … either start with low financial incentives for coordination, which typically leads to coordination failure, and then are … switched to higher incentives or start with high incentives, which typically yield effective coordination, and are switched to …

, managers have two instruments at their disposal, increasing employees' financial incentives to coordinate and communication …

patterns of behavior. Using controlled laboratory experiments, we study how financial incentives can be used to find a way out … explores the effects of varying the financial incentives to coordinate at a higher effort level. We find that an increase in … small increases. Once subjects have coordinated on a higher effort level, reductions in the financial incentives to …