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Peer Evaluations and Team Performance: When Friends Do Worse Than Strangers

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  • Brice Corgnet

    ()
    (Facultad de Ciencias Económicas y Empresariales, Universidad de Navarra)

Abstract

We use peer assessments as a tool to allocate joint profits in a real effort team experiment. We find that using this incentive mechanism reduces team performance. More specifically, we show that teams composed of fellows rather than strangers actually underperform in a context of peer evaluations. We conjecture that peer evaluations undermine the inherently high level of intrinsic motivation that characterizes teams composed of friends. We finally analyze the determinants of peer assessments and stress the crucial importance of equality concerns.

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File URL: http://www.unav.es/facultad/econom/files/workingpapersmodule/@random497080f7805d2/1257154402_WP_UNAV_12_09.pdf
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Bibliographic Info

Paper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 12/09.

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Length: 43 pages
Date of creation: 02 Nov 2009
Date of revision:
Handle: RePEc:una:unccee:wp1209

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Web page: http://www.unav.es/facultad/econom

Related research

Keywords: team incentives; peer evaluations; experiments;

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  1. Encinosa III, William E. & Gaynor, Martin & Rebitzer, James B., 2007. "The sociology of groups and the economics of incentives: Theory and evidence on compensation systems," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 187-214, February.
  2. Claude Montmarquette & Jean-Louis Rulliere & Marie-Claire Villeval & Romain Zeiliger, 2004. "Redesigning teams and incentives in a merger: An experiment with managers and students," Artefactual Field Experiments 00099, The Field Experiments Website.
  3. Olivier Bochet & Talbot Page & Louis Putterman, 2005. "Communication and Punishment in Voluntary Contribution Experiments," Working Papers 2005-09, Brown University, Department of Economics.
  4. Noussair, C.N. & Masclet, D. & Tucker, S. & Villeval, M..C, 2003. "Monetary and non-monetary punishment in the voluntary contributions mechanism," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377951, Tilburg University.
  5. Michael Kosfeld & Armin Falk, 2006. "The Hidden Costs of Control," American Economic Review, American Economic Association, vol. 96(5), pages 1611-1630, December.
  6. Jonathan Levin, 2000. "Relational Incentive Contracts," Working Papers 01002, Stanford University, Department of Economics.
  7. Leibowitz, Arleen & Tollison, Robert, 1980. "Free Riding, Shirking, and Team Production in Legal Partnerships," Economic Inquiry, Western Economic Association International, vol. 18(3), pages 380-94, July.
  8. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
  9. Gaynor, Martin & Pauly, Mark V, 1990. "Compensation and Productive Efficiency of Partnerships: Evidence from Medical Group Practice," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 544-73, June.
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