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Equal Pay for Unequal Work: Limiting Sabotage in Teams

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  • Arup Bose
  • Debashis Pal
  • David E. M. Sappington

Abstract

"We demonstrate the value of "equal pay" policies in teams, even when team members have distinct abilities and make different contributions to team performance. A commitment to compensate all team members in identical fashion eliminates the incentive that each team member otherwise has to sabotage the activities of teammates in order to induce the team owner to implement a more favorable reward structure. The reduced sabotage benefits the team owner, and can secure Pareto gains under plausible circumstances." Copyright (c) 2010, The Author(s) Journal Compilation (c) 2010 Wiley Periodicals, Inc..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 19 (2010)
Issue (Month): 1 (03)
Pages: 25-53

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Handle: RePEc:bla:jemstr:v:19:y:2010:i:1:p:25-53

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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/

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Web: http://www.blackwellpublishing.com/journal.asp?ref=1058-6407&site=1

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Cited by:
  1. Annala, Christopher N. & Winfree, Jason, 2011. "Salary distribution and team performance in Major League Baseball," Sport Management Review, Elsevier, vol. 14(2), pages 167-175, May.
  2. Kouroche Vafaï, 2012. "Supervision in Firms," Documents de travail du Centre d'Economie de la Sorbonne 12084, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. J. Atsu Amegashie, 2013. "Sabotage in Contests: An Overview," CESifo Working Paper Series 4422, CESifo Group Munich.
  4. Kouroche Vafaï, 2012. "Optimal Organization," Economics Bulletin, AccessEcon, vol. 32(1), pages 518-527.
  5. Subhasish M. Chowdhury & Oliver Gurtler, 2013. "Sabotage in Contests: A Survey," University of East Anglia Applied and Financial Economics Working Paper Series 051, School of Economics, University of East Anglia, Norwich, UK..
  6. repec:hal:journl:halshs-00768900 is not listed on IDEAS
  7. Kouroche Vafaï, 2012. "Supervision in Firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00768900, HAL.
  8. Kräkel, Matthias & Müller, Daniel, 2012. "Sabotage in teams," Economics Letters, Elsevier, vol. 115(2), pages 289-292.

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