Kvaloy, Ola; Olsen, Trond - 2007
can hold-up, the lower is the implementable degree of peer dependent incentives. In a setting with team effects … - complementary tasks and peer pressure, respectively - we show that while team-based incentives are optimal if agents are dispensable …, it may be costly, and in fact suboptimal, to provide team incentives once the agents become indispensable. …