Bandiera, Oriana; Barankay, Iwan; Rasul, Imran - London School of Economics and Political Science; … - 2005
incentives, where individual effort imposes a negative externality on others,to their productivity under piece rates, where it … does not. We find that the productivity of theaverage worker is at least 50 percent higher under piece rates than under … workers does not affect productivity. Further analysis reveals thatworkers internalize the externality only when they can …