This paper reports on an experiment that studies the functioning of a political market. The formal model, on which the experiment is based, considers a situation wherein two candidates participate in a series of structurally identical elections. The model also incorporates and emphasizes an...

We use peer assessments as a tool to allocate joint profits in a real effort team experiment. We find that using this incentive mechanism reduces team performance. More specifically, we show that teams composed of fellows rather than strangers actually underperform in a context of peer...