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Voluntary Teaming and Effort

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  • Claudia Keser

    ()

  • Claude Montmarquette

    ()

Abstract

In a series of experimental effort games each of two players may choose between remuneration based on either private or team effort. Although at least one of the players has the subgame perfect equilibrium strategy to choose remuneration based on private effort, we frequently observe team remuneration chosen by both players. Team remuneration allows for high payoff for cooperation to each player, but at the same time provides individual incentives to take a free ride on the other player's effort. 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. Dans cette étude expérimentale, chaque paire de participants doit choisir entre une forme de rémunération d'équipe ou privée pour leurs efforts consentis. Même si le choix de la forme privée de rémunération est pour au moins un des deux joueurs une stratégie d'équilibre parfait en sous-jeu, nous observons que la rémunération d'équipe est fréquemment choisie par les deux joueurs. La rémunération d'équipe permet un profit élevé de collaboration pour chaque joueur, mais elle incite également au resquillage sur le niveau d'effort de l'autre participant. Fruit de cette collaboration, nous observons que les participants affichent des profits plus élevés relativement au choix de la structure privée de rémunération. Finalement, lorsque les participants sont soumis à la rémunération d'équipe, ils coopèrent moins que lorsque cette option est volontairement choisie.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2004s-49.

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Date of creation: 01 Nov 2004
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Handle: RePEc:cir:cirwor:2004s-49

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Keywords: team effort; workforce management; experimental economics; effort d'équipe; gestion des ressources humaines; économie expérimentale;

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  1. Ernst Fehr & Simon Gaechter, . "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
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Cited by:
  1. Kene Boun My & Benoît Chalvignac, 2009. "Voluntary participation and cooperation in a collective-good game," Working Papers of BETA 2009-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Pierre Koning & J. Vyrastekova & S. Onderstal, 2006. "Team incentives in public organisations; an experimental study," CPB Discussion Paper 60, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Dargnies, Marie-Pierre, 2011. "Men too sometimes shy away from competition: The case of team competition," Discussion Papers, Research Unit: Market Behavior SP II 2011-201, Social Science Research Center Berlin (WZB).
  4. Sabrina Teyssier, 2008. "Experimental Evidence on Inequity Aversion and Self-Selection between Incentive Contracts," Working Papers 0821, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  5. Sabrina Teyssier, 2008. "Les Modes de Rémunération comme Mécanismes Sélectifs de la Main d’oeuvre : Fondements Théoriques et Estimations Empiriques," Working Papers 0818, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  6. Sabrina Teyssier, 2008. "Experimental Evidence on Inequity Aversion and Self-Selection between Incentive Contracts," Post-Print halshs-00303727, HAL.
  7. Sabrina Teyssier, 2008. "Les Modes de Rémunération comme MécanismesSélectifs de la Main d'oeuvre : Fondements Théoriques et Estimations Empiriques," Post-Print halshs-00303703, HAL.

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