Team Incentives and Performance: Evidence from a Retail Chain
Guido Friebel (),
Miriam Krueger and
Nick Zubanov ()
American Economic Review, 2017, vol. 107, issue 8, 2168-2203
In a field experiment with a retail chain (1,300 employees, 193 shops), randomly selected sales teams received a bonus. The bonus increases both sales and number of customers dealt with by 3 percent. Each dollar spent on the bonus generates $3.80 in sales, and $2.10 in profit. Wages increase by 2.2 percent while inequality rises only moderately. The analysis suggests effort complementarities to be important, and the effectiveness of peer pressure in overcoming free-riding to be limited. After rolling out the bonus treatment, and control shops' performance converge, suggesting long-term stability of the treatment effect.
JEL-codes: D22 J31 J33 L25 L81 M53 M54 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20160788
References: Add references at CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... rn5TVeBF45pEqZCcJqYy (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... TYJiFmFVuyA7zilTGtyo (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Team incentives and performance: Evidence from a retail chain (2017)
Working Paper: Team incentives and performance: Evidence from a retail chain (2015)
Working Paper: Team Incentives and Performance: Evidence from a Retail Chain (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:8:p:2168-2203
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().