“…Empirical tests of team formation and team incentives remain scarce (Lazear and Shaw, 2007;List and Rasul, 2011;Charness and Kuhn, 2011). While the empirical literature has investigated extensively cooperation and free-riding in groups (see surveys by Chaudhuri, 2011, andVilleval, 2020) and more recently the dynamics of group composition (e.g., Bandiera et al, 2013;Chen and Gong, 2018, in the context of teamwork; Ahn et al, 2008;Charness and Yang, 2014, in the context of public good games), very few papers have explored selection into team-based compensation. The influential paper of Hamilton et al (2003) studies a garment company switching from individual piece rates to a form of revenue sharing teams.…”