Problem description: A recent trend in personnel operations is to reduce hierarchy and allow employee teams to self-manage tasks, responsibilities, and rewards. Yet we know little about how this arrangement relates to worker productivity and fairness.Academic/Practical relevance: We provide the...

This paper examines how compensation systems impact peer effects and competition in collocated sales teams. We use department store sales data to show that compensation systems influence worker incentives to help and compete with peers within and across firms, which in turn changes how coworker...