damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate. We …

This paper studies how morale in teams can break down. It interprets high morale as team members working together … productively, either because of a sense of fairness or because of implicit incentives from repeated interactions. Team members … encourage cooperation may actually hurt morale, by convincing opportunistic team members to imitate and later take advantage of …