Using an experiment in which workers pay depends only on their own performance (output), I examine the interactive effects of mutual monitoring (opportunity to observe peer effort) and relative performance information (RPI) on productivity (performance per unit of time spent). I predict and find...

Research shows that penalty contracts can motivate more effort due to loss aversion. However, we do not have a clear understanding of how individuals are motivated by penalty contracts at different levels of target difficulty. Thus, we experimentally evaluate the effects of contract frame and...