Abstract of thesis The Impact of Different Reward System on Individuals’ effort in a team ------ An theoretical experimental study. Submitted by Liu Ya (M-B2-5614-8) for the degree of Master of Social Science in Economics at the University of Macau in June 2014. This paper presents theoretical and experimental examination of the incentive effects of three different reward systems. We investigate the effects of different reward systems on the level of effort under different conditions. We find that: First, all of the individuals are learning in the experiment to get the optimal value or Nash Equilibrium. As a result, the values of effort they choose are around the optimal values or Nash Equilibrium. Second, compared to the independent reward system, in the team based reward system individuals tend to select higher effort, and the values in output-based reward system are a slightly higher than that in effort-based reward system. Third, subjects are more efficient in the team based reward system than in the independent reward system.