We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on … pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these …

work individually without monetary incentives and are then assigned to teams of two where compensation is based on team …Optimal team composition has been the focus of exhaustive analysis, academic and otherwise. Yet, much of this analysis … has ignored possible dynamic effects: e.g., anticipating that team formation is based on prior performance will affect …

We conduct a field experiment in a Dutch retail chain of 122 stores to study the interaction between team incentives …, team social cohesion, and team performance. Theory predicts that the effect of team incentives on team performance … increases with the team's social cohesion, because social cohesion reduces free-riding behavior. In addition, team incentives …

predicts both errors to be equally detrimental to performance, this prediction fails with a lab experiment. In fact, failing to … resource management and personnel economics and may also contribute to the debate about incentives and organizational …

intent, that can cause incentives to fail. Using an experiment that provides the material circumstances necessary for …Empirical studies of the principal-agent relationship find that extrinsic incentives work in many instances, linking … drive to work to master a skill or to improve one's self image, is thought to be the key to whether incentives work or not …

(SOPs) and Team Incentive Plans (TIPs). In do doing, we assemble important new panel data by merging data from a survey of …

of incentives and when incentives can have “hidden costs”, i.e., a detrimental effect. We show experimentally that in all …'s behavior. Our finding contributes to the micro-foundation of psychological effects of incentives …

We ran a field experiment in a Dutch retail chain consisting of 128 stores. In a random sample of these stores, we … tournament. Lastly, despite the substantial variation in team size, we find no evidence for free-riding …

We present evidence on social incentives in the workplace, namely on whether workers' behavior is affected by the … are paid piece rates based on individual productivity, social incentives can be quantified in monetary terms and are such … productivity by 10%. The distribution of worker ability is such that the net effect of social incentives on the firm's aggregate …

This paper studies the interplay between economic incentives and social norms in firms. We introduce a general … a simple model of team production we examine the interplay of different types of contracts with social norms. We show … also show how social norms can induce multiplicity of equilibria and how steeper economic incentives can reduce effort …