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We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on … pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these …
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Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a...
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team size and workers' incentive contracts. Team size increases with project risk, decreases with profitability, and … flattened. The predicted effects of monitoring costs on team size are supported by evidence that improvements in information … with profitability. The endogenous determination of team size accentuates the positive effects of a decline in risk and an …
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results hold because, when shirking by one team member requires cooperation from his colleagues, it is cheaper to prevent, but …
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