A worker's utility may increase in his own income, but envy can make his utility decline with his employer's income … various assumptions about the object and generality of envy. Envy amplifies the effect of incentives on effort and, therefore …, increases optimal incentive pay. Moreover, envy can make profitsharing optimal, even when the worker's effort is fully …

We consider the cost of providing incentives using tournaments when workers are inequity averse and performance … workers, but he may benefit from their propensity for envy depending on the costs of assessing performance. More envious …