Social norms and economic incentives in firms

► Paper models the interplay between economic incentives and social norms in firms. ► Norms are due to agents' desire for social efficiency. ► Disutility from falling short of the norm depends on own and others' efforts. ► The same norm is output-increasing in team work and -decreasing in tournaments. ► Crowding-out effects of steeper incentives can occur due to multiple equilibria.