eprintid: 14458 rev_number: 27 eprint_status: archive userid: 600 dir: disk0/00/01/44/58 datestamp: 2009-10-28 17:52:13 lastmod: 2015-07-23 09:36:18 status_changed: 2009-10-28 17:52:13 type: working_paper metadata_visibility: show item_issues_count: 0 creators_name: Irlenbusch, B. creators_name: Ruchala, G. creators_id: creators_id: GRUCH99 title: Relative rewards within team-based compensation ispublished: pub subjects: 13200 keywords: JEL classification: C72, C91, H41, J33, L23, M52. Bonus pools, relative rewards, motivation crowding out, voluntary cooperation, personnel economics, experiments abstract: How to design compensation schemes to motivate team members appears to be one of the most challenging problems in the economic analysis of labour provision. We shed light on this issue by experimentally investigating team-based compensations with and without bonuses awarded to the highest contributors in teams. A purely team-based compensation scheme induces agents to voluntarily cooperate while introducing an additional relative reward increases effort and efficiency only when the bonus is substantial. In this case, however, the data suggests that tournament competition crowds out voluntary cooperation within a team. date: 2007-01 publisher: ESRC Centre for Economic Learning and Social Evolution official_url: http://else.econ.ucl.ac.uk/newweb/papers.php#2007 oa_status: green language: eng primo: open primo_central: open_green lyricists_name: Luenser, G lyricists_id: GRUCH99 full_text_status: public series: ELSE Working Papers number: 239 place_of_pub: London, UK citation: Irlenbusch, B.; Ruchala, G.; (2007) Relative rewards within team-based compensation. (ELSE Working Papers 239). ESRC Centre for Economic Learning and Social Evolution: London, UK. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/14458/1/14458.pdf