Rational Sabotage in Cooperative Production with Heterogeneous Agents
AbstractWe present a model of cooperative production in which rational agents might carry out sabotage activities that decrease output. We provide necessary and sufficient conditions for the existence of a Nash equilibrium without sabotage. It is shown that the absence of sabotage in equilibrium depends on the interplay between technology, relative productivity of agents and the degree of meritocracy. In particular we show that, ceteris paribus, meritocratic systems give more incentives to sabotage than egalitarian systems.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): 6 (2006)
Issue (Month): 1 (November)
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Other versions of this item:
- Carmen Bevi? & Luis C. Corch?n, 2006. "Rational Sabotage in Cooperative Production with Heterogeneous Agents," UFAE and IAE Working Papers 663.06, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Carmen Beviá & Luis C. Corchón, 2006. "Rational Sabotage in Cooperative Production with Heterogeneous Agents," Economics Working Papers we20090204, Universidad Carlos III, Departamento de Economía.
- D20 - Microeconomics - - Production and Organizations - - - General
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
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