Scroll to Section:
Researcher | Institution | Original publication | Reading recommendations | Beyond | CitationThe experiment presented in this video explores the interaction of reward schemes and production functions on team effort. SEBASTIAN J. GOERG explains that unequal rewards seem to yield higher efficiency for complementary production functions (i.e., if each worker’s effort counts); but that symmetric reward schemes induce higher efforts if workers’ efforts are substitutes. He concludes that inequality may have a positive effect on efficiency and that both production function and reward scheme are potent tools to raise average effort.
DOI:
https://doi.org/10.21036/LTPUB10096
Institution
Florida State University
"Florida State University preserves, expands, and disseminates knowledge in the sciences, technology, arts, humanities, and professions, while embracing a philosophy of learning strongly rooted in the traditions of the liberal arts. The university is dedicated to excellence in teaching, research, creative endeavors, and service. The university strives to instill the strength, skill, and character essential for lifelong learning, personal responsibility, and sustained achievement within a community that fosters free inquiry and embraces diversity." ( Source )
Show more
Original publication
Treating Equals Unequally: Incentives in Teams, Workers’ Motivation, and Production Technology
Journal of Labor Economics
Published in 2010
Reading recommendations
Can Higher Rewards Lead to Less Effort? Incentive Reversal in Teams
Journal of Economic Behavior & Organization
Published in 2014
Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics
Analyse & Kritik
Published in 2011
Interactions Between Workers and the Technology of Production: Evidence from Professional Baseball
The Review of Economics and Statistics
Published in 2009
Incentives and Discrimination
American Economic Review
Published in 2004
A Theory of Fairness, Competition, and Cooperation
Quarterly Journal of Economics
Published in 1999
Beyond
A Ground-breaking Scientific Revolution
An Alarming Challenge for Society
If I Had a Second Life
A Personal Reading Recommendation