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Career Concerns in Teams

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Author Info
Emmanuelle Auriol (Atelier de Recherche Quantitative Appliquee au Developpement Economique and Institut d'Economie Industrielle, Toulouse)
Guido Friebel (Stockholm Institute for Transition Economics and Institut d'Economie Industrielle, Toulouse, Centre for Economic Policy Research)
Lambros Pechlivanos (Foundation for Economic and Industrial Research, Athens)

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Abstract

We investigate how changes in the commitment power of a principal affect cooperation among agents who work in a team. When the principal and her agents are symmetrically uncertain about the agents' innate abilities, workers have career concerns. Then, unless the principal can commit herself to long-term wage contracts, an implicit sabotage incentive emerges. Agents become reluctant to help their teammates. Anticipating this risk, and in order to induce the desired level of cooperation, the principal offers more collectively oriented incentive schemes. Temporary workers, though, are not affected by the sabotage effect, and their incentives are more individually oriented.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 20 (2002)
Issue (Month): 2 (Part)
Pages: 289-307
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Handle: RePEc:ucp:jlabec:v:20:y:2002:i:2:p:289-307

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  1. Michelle Brown & John Heywood, 2009. "Helpless in Finance: The Cost of Helping Effort Among Bank Employees," Journal of Labor Research, Springer, vol. 30(2), pages 176-195, June. [Downloadable!] (restricted)
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  2. Michèle Breton & Pascal St-Amour & Désiré Vencatachellum, 2002. "Inter- vs Intra-generational Production Teams: A Young Worker's Perspective," CIRANO Working Papers 2002s-57, CIRANO. [Downloadable!]
  3. Alexander K. Koch & Albrecht Morgenstern, 2005. "From Team Spirit to Jealousy: The Pitfalls of Too Much Transparency," Royal Holloway, University of London: Discussion Papers in Economics 05/08, Department of Economics, Royal Holloway University of London, revised Jul 2005. [Downloadable!]
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  4. Guido Friebel & Wendelin Schnedler, 2007. "Team Governance: Empowerment or Hierarchical Control," IZA Discussion Papers 3143, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. J. Amegashie & Marco Runkel, 2007. "Sabotaging Potential Rivals," Social Choice and Welfare, Springer, vol. 28(1), pages 143-162, January. [Downloadable!] (restricted)
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  6. Johannes Münster, 2006. "Selection Tournaments, Sabotage, and Participation," Discussion Papers 118, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  7. Oliver Gürtler & Johannes Münster, 2009. "Sabotage in dynamic tournaments," Discussion Papers 266, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  8. Alexander Koch & Eloïc Peyrache, 2008. "Mixed up? that’s good for motivation," Economic Theory, Springer, vol. 34(1), pages 107-125, January. [Downloadable!] (restricted)
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  9. Kai A. Konrad, 2005. "Tournaments and Multiple Productive Inputs: The Case of Performance Enhancing Drugs," IZA Discussion Papers 1844, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Irlenbusch, Bernd & Sliwka, Dirk, 2003. "Career Concerns in a Simple Experimental Labour Market," IZA Discussion Papers 855, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Kvaløy, Ola & Olsen, Trond E., 2007. "Cooperation in knowledge-intensive firms," Discussion Papers 2007/27, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
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