-selection, incentives and performance is based on a weak-link game devised by van Huyck et al. (1990). This is the optimal tool to … performance process within working groups. The literature on the sorting effect of incentives focuses almost exclusively on the … have an impact on the matching of employees and organizations and therefore the effectiveness of incentives. The …

influence agents incentives and lead to a noncooperative game, even if the agents have to complete independent tasks. I show … substitutes. I solve for the optimal monetary incentives that complement the peer effects and show that the principal prefers …