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The Economics of Shame in Work Groups: How Mutual Monitoring Can Decrease Cooperation in Teams

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  • Orr, Shepley W
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    Abstract

    Recent economic theory suggests that free riding under group piece-rate incentive schemes can be alleviated by mutual monitoring and social sanctioning. This assumption is challenged by showing that the presence of the price mechanism in mutual monitoring and sanctioning can decrease the motivation to cooperate for certain types of agents: because the social rewards which may develop through work can be egoistically motivated, withholding disapproval matters less to cooperative agents. Hence, mutual monitoring can decrease cooperation in teams depending upon the proportion of normatively vs. egoistically motivated types. Evidence for these cognitive mechanisms from experimental social psychology is presented with a mathematical model. Copyright 2001 by WWZ and Helbing & Lichtenhahn Verlag AG

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Kyklos.

    Volume (Year): 54 (2001)
    Issue (Month): 1 ()
    Pages: 49-66

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    Handle: RePEc:bla:kyklos:v:54:y:2001:i:1:p:49-66

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

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    Cited by:
    1. Luigi Mittone & Francesca Bortolami, 2007. "Free riding and norms of control: self determination and imposition. An experimental comparison," CEEL Working Papers 0704, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    2. C Green & J S Heywood, 2008. "Profit Sharing and the Quality of Relations with the Boss," Working Papers 596078, Lancaster University Management School, Economics Department.
    3. Tan, Jonathan H.W. & Zizzo, Daniel John, 2008. "Groups, cooperation and conflict in games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 1-17, February.
    4. repec:lan:wpaper:3014 is not listed on IDEAS
    5. repec:lan:wpaper:3169 is not listed on IDEAS
    6. Brice Corgnet & Roberto Hernán-González & Stephen Rassenti, 2011. "Real Effort, Real Leisure and Real-time Supervision: Incentives and Peer Pressure in Virtual Organizations," Working Papers 11-05, Chapman University, Economic Science Institute.
    7. repec:lan:wpaper:2920 is not listed on IDEAS

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