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Team Formation and Self‐serving Biases

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  • Brice Corgnet

Abstract

There is extensive evidence which indicates that people learn positively about themselves. We build on this finding to develop a model of team formation. We show that under complete information learning positively about oneself prevents efficient team formation. Agents becoming overconfident tend to ask for an excessive share of the group outcome. Positive learning generates divergence in workers' beliefs and hampers efficient team formation. Interestingly, in a context of incomplete information regarding the partner's ability, extensive learning biases may reduce the divergence in agents' beliefs and facilitate efficient team formation as a result. We apply our model to coauthorship and organizational issues.

Suggested Citation

  • Brice Corgnet, 2010. "Team Formation and Self‐serving Biases," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(1), pages 117-135, March.
  • Handle: RePEc:bla:jemstr:v:19:y:2010:i:1:p:117-135
    DOI: 10.1111/j.1530-9134.2009.00247.x
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    Cited by:

    1. Hendrik Hakenes & Svetlana Katolnik, 2018. "Optimal Team Size and Overconfidence," Group Decision and Negotiation, Springer, vol. 27(4), pages 665-687, August.
    2. Ayvazyan, Z.S. (Айвазян, З.С.) & Bespalov, Sergei (Беспалов, Сергей) & Maracha, Vyacheslav (Марача, Вячеслав), 2017. "Problems of the Strategic Cycle in the System of Public Administration: Optimization of Mechanisms for the Development and Implementation of Decisions [Проблемы Стратегического Цикла В Системе Госу," Working Papers 061703, Russian Presidential Academy of National Economy and Public Administration.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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