Many organizations rely on teamwork, and yet field evidence on the impacts of team-basedincentives remains scarce …. Compared to individual incentives, team incentives can affectproductivity by changing both workers’ effort and team composition … provision of team-based incentives crowds out the productivity enhancingeffect of social connections under team production.... …

We investigate a team setting in which workers have different degrees of commitment to theoutcome of their work. We … show that if there are complementarities in production and if theteam manager has some information about team members …