We consider multi-agent multi-firm contracting when agents benchmark their wages to a weighted average of their peers, where weights may vary within and across firms. Despite common shocks, compensation benchmarking can undo performance benchmarking, so that wages load positively rather than...

We survey the recent, fast-growing literature on peer effects in networks. An important recurring theme is that the causal identification of peer effects depends on the structure of the network itself. In the absence of correlated effects, the reflection problem is generally solved by network...

We study both endogenous and exogenous peer effects in worker productivity using an explicit network approach. We apply this method to data from an in-house call center of a multinational mobile network operator that include detailed information on individual performance. We find that a 10%...

We study both endogenous and exogenous peer effects in worker productivity using an explicit network approach. We find that a 10% increase in average co-worker current productivity increases worker productivity by 5.3%. A 10% increase in average co-worker permanent productivity decreases worker...

Measuring individual productivity (or equivalently distributing the overall productivity) in a network structure of workers displaying peer effects has been a subject of ongoing interest in many areas ranging from academia to industry. In this paper, we propose a novel approach based on...