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Asymmetric Treatment of Identical Agents in Teams

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  • Debashis Pal

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  • Arup Bose
  • David Sappington

Abstract

We investigate when identical agents will be treated asymmetrically in a simple team setting. Asymmetric treatment is optimal when the agents individual contributions to team performance are complements. Symmetric treatment of identical agents is optimal when the agents contributions are substitutes or when they are independent.

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Bibliographic Info

Paper provided by University of Cincinnati, Department of Economics in its series University of Cincinnati, Economics Working Papers Series with number 2008-08.

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Length: 28 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:cin:ucecwp:2008-08

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  10. Ramarao Desiraju & David E. M. Sappington, 2007. "Equity and Adverse Selection," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 285-318, 06.
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  14. Itoh, Hideshi, 1991. "Incentives to Help in Multi-agent Situations," Econometrica, Econometric Society, vol. 59(3), pages 611-36, May.
  15. McAfee, R Preston & McMillan, John, 1991. "Optimal Contracts for Teams," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 561-77, August.
  16. Huseyin Yildirim, 2006. "Getting the Ball Rolling: Voluntary Contributions to a Large-Scale Public Project," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(4), pages 503-528, October.
  17. Eric Rasmusen, 1987. "Moral Hazard in Risk-Averse Teams," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 428-435, Autumn.
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