Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282159 
Year of Publication: 
2023
Series/Report no.: 
Discussion Paper No. 468
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
Despite the prevalence of non-routine analytical team tasks in modern economies, little is understood regarding how incentives influence performance in these tasks. In a series of field experiments involving more than 5,000 participants, we investigate how incentives alter behavior in teams working on such a task. We document a positive effect of bonus incentives on performance, even among teams with strong intrinsic motivation. Bonuses also transform team organization by enhancing the demand for leadership. Exogenously increasing teams' demand for leadership results in performance improvements comparable to those seen with bonus incentives, rendering it as a likely mediator of incentive effects.
Subjects: 
team work
bonus
incentives
leadership
non-routine
exploration
JEL: 
C92
C93
J33
D03
M52
Document Type: 
Working Paper

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