Individual versus group piece rates under team technologies

We consider pay schemes under technologies where it is efficient for each worker to help other workers. Depending upon worker behavior assumptions, we find that individual piece rates may cause inefficient undercooperation, while group piece rates may cause inefficient overcooperation. J. Japan Int. Econ., March 1988, 2(1), pp. 1–10. Department of Economics, University of Wisconsin, Milwaukee, Wisconsin 53201; Department of Economics, Louisiana State University, Baton Rouge Louisiana 70803-6306.