We develop an agency model subject to moral hazard to evaluate whether delivery prices reward carriers for their performance, or arbitrarily benefit some carriers and harm others. From the model, we derive several propositions that we test on a panel data of 58 carriers that work for a shipper...

While the impact of formal incentives on individuals is well understood, their impact on teams is less clear. A handful of field experiments document a small or null impact of incentives on teams. However, these studies do not contrast their results with the impact of incentives on individuals,...