Studies of gift exchange have focused on employees' provision of effort to reciprocate good wages, but other avenues of reciprocation exist. We study a natural alternative, the use of verbal rewards and punishments, by altering a bilateral gift exchange game so that employees can send messages...

Contests between groups of workers are often used to create incentives in organizations. Managers can sort workers into groups in various ways in order to maximize total output. We explore how the optimal sorting of workers by ability in such environments depends on the degree of effort...

Group decision making provides a mechanism for channeling individual members' knowledge into productive organizational outcomes. However, in hidden profile experiments in which group members have common information favoring an inferior choice, with private information favoring a superior choice,...