In a multi-agent setting, individuals often compare own performance with that of their peers. These comparisons …

employee after she has inspected the employee. We find that rewards or sanctions can both discourage shirking, and have similar … effects on joint earnings. In games allowing sanctions a reduction in shirking is accomplished with a lower inspection rate … and the efficiency gains are shared more equitably. A treatment where employers can combine sanctions and rewards leads to …

employee after observing stage game payoffs. When employers have limited discretion, and can only apply sanctions and … are more effective than sanctions. In treatments where employers can combine sanctions and rewards employers rely mainly …