We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …

providing incentives through group versus individual bonus schemes. When workers have a propensity for envy, either scheme may …

A worker’s utility may increase in his own income, but envy can make his utility decline with his employer’s income … various assumptions about the object and generality of envy. Envy amplifies the effect of incentives on effort and, therefore …, increases optimal incentive pay. Moreover, envy can make profitsharing optimal, even when the worker’s effort is fully …