Bandiera, Oriana; Barankay, Iwan; Rasul, Imran - London School of Economics and Political Science; … - 2005
incentives, where individual effort imposes a negative externality on others,to their productivity under piece rates, where it … relative incentives. Weshow that this is due to workers partially internalizing the negative externality their effort imposeson … workers does not affect productivity. Further analysis reveals thatworkers internalize the externality only when they can …
