How incentives can hurt group productivity and shared resources

Friday, March 11, 2011 - 12:50 in Mathematics & Economics

A study by Professor Stephan Meier, Assistant Professor, Management at Columbia Business School, and co-author Andreas Fuster, Ph.D. candidate, Harvard University Department of Economics, which was published in Management Science, an INFORMSR publication, found that while monetary incentives in the workplace, such as subsidies or bonuses, are regarded to be effective ways to encourage staff contributions, incentives can interfere in public and workplace environments dependent on informal norm enforcement.

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