Hehenkamp, Burkhard; Kaarboe, Oddvar - In: FinanzArchiv: Public Finance Analysis 62 (2006) 1, pp. 124-148
We study optimal incentive contracts offered to teams where team members feel a social pressure to exert similar effort levels. The team consists of two groups of agents differing in their productivity. We characterize first best and the equilibrium under agency. Regarding economic incentives,...