A randomized field experiment was carried out to determine how workers respond to wage cuts. A company formed teams of two employees for a temporary promotion campaign. Both team members had identical individual tasks (sell promotional cards for entrance to a nightclub) and were initially paid the same hourly wage. After a short period of time on the job, teams were unknowingly randomly assigned to one of three treatments. In the "unilateral wage cut" treatment, one worker's pay was cut by