What Kind of Reward Scheme Works Best to Induce High Effort in Teams?
The 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/LTPUB10096Florida State University
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Original Publication
Treating Equals Unequally: Incentives in Teams, Workers’ Motivation, and Production Technology
Sebastian J. Goerg
,Sebastian Kube
,Ro’i Zultan
Published in 2010