We present evidence on social incentives in the workplace, namely on whether workers’ behavioris affected by the presence of those they are socially tied to, even in settings where thereare no externalities among workers due to either the production technology or the compensationscheme in...

Large companies are usually organized into business units, yet some activitiesare almost always centralized in a company-wide functional unit. We firstshow that organizations endogenously create an incentive conflict between functionalmanagers (who desire excessive standardization) and...