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This paper analyzes experimentally how the interaction of task meaning and peer presence affects work effort. We build on the experimental designs of Falk and Ichino (2006) and Ariely et al. (2008). Confirming previous results from the literature, we find positive peer effects and negative...
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's performance, but are not observed by anybody; in the last group subjects work in isolation, neither observing, nor being observed …. We consider both a piece rate compensation scheme, where pay depends solely on own performance, and a team compensation … scheme, where pay also depends on the performance of other team members. Overall, we find some evidence that subjects who are …
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