Mohnen, Alwine; Pokorny, Kathrin; Sliwka, Dirk - In: Journal of Labor Economics 26 (2008) 4, pp. 693-720
We provide an explanation for peer pressure in teams based on inequity aversion. Analyzing a two-period model with two agents, we find that the effect of inequity aversion strongly depends on the information structure. When contributions are unobservable, agents act as though they were purely...