Peer comparisons shape incentives, leading to strategic cooperation or competition.
The article explores how people's performance is influenced by comparing themselves to others, even when working on separate tasks. The study shows that these comparisons can either make people work harder or slack off, depending on the situation. The research also suggests that offering the right monetary incentives can help improve performance. In some cases, even if it seems inefficient, it might be better to reward people more for their efforts.