This paper reports the results of an experiment on how team heterogeneity in terms of productivity influences both the revenue sharing proposed by the principal to the team and the employees’ performance. Experimental evidence shows that when the team is heterogeneous, the principal does not try to motivate the agents through her sharing offer. Regardless of the level of team-based compensation, a large amount of free riding occurs since each agent is mainly influenced by his teammate's behavior. In contrast, when the team is homogeneous, agents are better able to cooperate, reciprocating the principal's offer.

This paper focuses on the relationship between individual self-control and peer pressure. To this end, we performed a laboratory experiment that proceeded in two parts. The first part involved an individual real-effort task in which subjects could commit themselves to a particular level of performance while being tempted by an alternative recreational activity. The second part consisted of bargaining in a power-to-take game in which previously earned revenues were at stake. The experimental treatments involved variations in the available information provided to peers about previous individual behavior. The results show that many subjects make a serious commitment. Further, the subsequent revelation of commitment level induces subjects to increase the credible components of their commitment decisions. Past individual behaviors also play a role in bargaining because (i) partners who have committed themselves benefit from lower rates of both take and destruction and (ii) partners who have succumbed to temptation suffer from higher rates of both take and destruction.

This study examined the predictors and sequelae of exposure to peer pressure from close friends in adolescence. Adolescents (99 female; 85 male) were followed from age 13 to 24 utilizing peer, parent, and romantic partner reports and observational data. Participants who were exposed to high levels of peer pressure as teens were more likely to experience higher levels of coercive behavior from romantic partners (as reported by those partners), as well as lower levels of parent-reported functional independence. All findings held even after accounting for baseline levels of teen assertiveness. Adolescents at risk for increasing exposure to peer pressure were characterized by poor-quality parent and peer relationships, as well as baseline deficits in ability to assert autonomy. Results suggest that exposure to peer pressure, aside from its potential effects on deviant or risky behavior, may reflect a powerful threat to the autonomy development process as adolescents transition from parents to peers as primary sources of support and interaction.

Subjects donate individually (control group) or in pairs (treatment group). Thosein pairs reveal their donation decision to each other. Average donations in thetreatment group are significantly higher than in the control group. Pairedsubjects have the opportunity to revise their donation decision afterdiscussion. Pair members shift toward each others’ initial decisions.Subjects are happier with their decision when their donations are larger, butthose in pairs are less happy, controlling for amount donated. These findingssuggest reluctant altruism due to peer pressure in charitable giving.