. 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 …

data. Factors emphasized in the economic theory of agency, notably risk aversion, also shape pay policies but these factors …

I develop an intra-firm theory of group design and teamwork in the presence of peer effects. The purpose is to … by the productivity levels of the teammates as well as the worker's own productivity. This means that team composition is … pronounced when workers are more alike within each team and more different across the teams. I provide numerical exercises …