This paper reviews studies conducted in naturally-occurring work environments or in the laboratory on the impact of performance feedback provision and peer effects on individuals' performance. First, it discusses to which extent feedback on absolute performance affects individuals' effort for...

Studies of gift exchange have focused on employees' provision of effort to reciprocate good wages, but other avenues of reciprocation exist. We study a natural alternative, the use of verbal rewards and punishments, by altering a bilateral gift exchange game so that employees can send messages...