Work

Letting Down the Team? Evidence of Social Effects of Team Incentives

Year: 2011

Type: report

Abstract: This paper estimates social effects of incentivizing people in teams.In two field experiments featuring exogenous team formation and opportunities for repeated social interactions, we find large team effects that operate through social channels.The team compensation system induced agents to choose effort as if they valued a marginal dollar of compensation for their teammate from two-thirds as much (in one study) to twice as much as they valued a dollar of their own compensation (in the other study).We conclude that social effects of monetary team incentives exist and can induce effort at lower cost than through direct individual payment.

Source: National Bureau of Economic Research

DOI: 10.3386/w16687

Authors: Philip Babcock, Kelly Bedard, Gary Charness, John Hartman, Heather Royer

Institutions: National Bureau of Economic Research, University of California, Santa Barbara

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1539106697

Cites: 78

Cited by: 35

Related to: 10