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Article
Peer Evaluations and Team Performance : When Friends Do Worse Than Strangers
in Economic Inquiry, 50 (1)
Voir la revue «Economic Inquiry»
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 acquaintances 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 and possibly exacerbate negative reciprocity among
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partners. Finally, we analyze the determinants of peer assessments and stress the crucial importance of equality concerns.
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