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, where team output is shared equally among team members, and a hierarchical mechanism team output is allocated...

A leader of an organization may view a subordinate as threatening or weakening the leader's position. The threat may increase with the subordinate's ability and reduce the rents the leader wins. In particular, a leader who trains his subordinate reduces the cost to the owner of a firm in...

Economic activity always involves the allocation of scarce goods to competing uses. Among these scarce goods is also the personnel of the enterprise. Personnel economics therefore also has to make such allocation decisions with respect to the availability of personnel and with respect to the...