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Voluntary versus Enforced Team Effort

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  • Claudia Keser

    ()
    (Faculty of Economic Sciences, Georg-August-Universität Göttingen, Platz der Göttinger Sieben 3, Göttingen D-37073, Germany)

  • Claude Montmarquette

    ()
    (CIRANO and University of Montréal, 2020 University Street, Montréal, H3A 2A5 Canada)

Abstract

We present a model where each of two players chooses between remuneration based on either private or team effort. Although at least one of the players has the equilibrium strategy to choose private remuneration, we frequently observe both players to choose team remuneration in a series of laboratory experiments. This allows for high cooperation payoffs but also provides individual free-riding incentives. Due to significant cooperation, we observe that, in team remuneration, participants make higher profits than in private remuneration. We also observe that, when participants are not given the option of private remuneration, they cooperate significantly less.

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Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Games.

Volume (Year): 2 (2011)
Issue (Month): 3 (August)
Pages: 277-301

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Handle: RePEc:gam:jgames:v:2:y:2011:i:3:p:277-301:d:13621

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Related research

Keywords: team effort; voluntary collaboration; experimental economics;

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References

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Cited by:
  1. Alexia Gaudeul & Paolo Crosetto & Gerhard Riener, 2014. "Fear of being left alone drives inefficient exit from partnerships. An experiment," Jena Economic Research Papers 2014-012, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Paolo Crosetto & Alexia Gaudeul & Gerhard Riener, 2012. "Partnerships, Imperfect Monitoring and Outside Options: Theory and Experimental Evidence," Jena Economic Research Papers 2012-052, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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