We develop a theory of incentives, wages, and employment in the context of team production. A central insight is that … incentives under moral hazard. We show that incentives and employment are complements for the principal when the positive effects …

Mixed individual and group incentives are widely used in practice under the assumption that by incentivizing both … of mixed incentives, one in which incentives are implemented in a simultaneous/independent manner and the other in a … sequential/dependent manner. Results suggest that adding individual incentives to group incentives motivates greater total effort …

-sharing selective incentives …

team size and workers' incentive contracts. Team size increases with project risk, decreases with profitability, and … flattened. The predicted effects of monitoring costs on team size are supported by evidence that improvements in information … with profitability. The endogenous determination of team size accentuates the positive effects of a decline in risk and an …

results hold because, when shirking by one team member requires cooperation from his colleagues, it is cheaper to prevent, but …

attaining the lower winning probability is the one choosing the rule giving higher incentives to the members …