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Rational Sabotage in Cooperative Production with Heterogeneous Agents

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Author Info
Carmen Bevi? ()
Luis C. Corch?n ()

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Abstract

We present a model of cooperative production in which rational agents might carry out sabotage activities that decrease output. We provide necessary and su cient 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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Publisher Info
Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 663.06.

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Length: 32
Date of creation: 28 Apr 2006
Date of revision:
Handle: RePEc:aub:autbar:663.06

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Related research
Keywords: Cooperative production; sharing rules; sabotage.;

Other versions of this item:

Find related papers by JEL classification:
D20 - Microeconomics - - Production and Organizations - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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