We study how help can be fostered by means of a team bonus in the presence of rank-order tournaments. In a simple model … we combine elements of relative rewards and a team bonus and study their effect on effort, help and sabotage. Quite … intuitively the theoretical analysis suggests that team members help less as relative rewards increase. This problem is mitigated …

provision are remarkably accurate. We also present experimental findings from three classic experiments, namely, team production … induced values, which is useful for theory-testing purposes as well as for applications. …

individuals have heterogeneous social and cognitive skills. In the model, there are gains to specialization and team production …, but specialization requires communication and coordination between team members, and individuals with more social skills … communicate and coordinate at lower resource cost. The theory delivers full task specialization in the labor and education markets …

. We consider both a piece rate compensation scheme, where pay depends solely on own performance, and a team compensation … scheme, where pay also depends on the performance of other team members. Overall, we find some evidence that subjects who are … observed increase productivity at least initially when compensation is team based, while we find that subjects observing react …

damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate …