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Team incentives and leadership

Drouvelis, Michalis; Nosenzo, Daniele; Sefton, Martin

Authors

Michalis Drouvelis

Daniele Nosenzo daniele.nosenzo@nottingham.ac.uk



Abstract

We study, experimentally, how two alternative incentive mechanisms affect team performance and how a team chooses between alternative mechanisms. We study a group incentive mechanism (team output is shared equally among team members) and a hierarchical mechanism (team output is allocated by a team leader). We find that output is higher when a leader has the power to allocate output, but this mechanism also generates large differences between earnings of leaders and other team members. When team members can choose how much of team output is to be shared equally and how much is to be allocated by a leader they tend to restrict the leader’s power to distributing less than half of the pie.

Journal Article Type Article
Journal Journal of Economic Psychology
Print ISSN 0167-4870
Electronic ISSN 0167-4870
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 62
APA6 Citation Drouvelis, M., Nosenzo, D., & Sefton, M. (in press). Team incentives and leadership. Journal of Economic Psychology, 62, https://doi.org/10.1016/j.joep.2017.07.002
DOI https://doi.org/10.1016/j.joep.2017.07.002
Keywords Team Production; Leadership; Reward Power; Delegation; Experiment
Publisher URL http://www.sciencedirect.com/science/article/pii/S0167487016304354
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0





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