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Black Sheep and Walls of Silence

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  • Muehlheusser, Gerd
  • Roider, Andreas

Abstract

In this paper we analyse the frequently observed phenomenon that (i) some members of a team ('black sheep') exhibit behaviour disliked by other (honest) team members, who (ii) nevertheless refrain from reporting such misbehaviour to the authorities (they set up a 'wall of silence'). Much cited examples include hospitals and police departments. In this paper, these features arise in equilibrium. An important ingredient of our model are benefits that agents receive when cooperating with each other in a team. Our results suggest that teams in which the importance of these benefits varies across team members are especially prone to the above mentioned phenomenon.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5308.

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Date of creation: Oct 2005
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Handle: RePEc:cpr:ceprdp:5308

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Keywords: asymmetric information; misbehaviour; teams; wall of silence;

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  14. repec:rus:hseeco:71401 is not listed on IDEAS
  15. Dhammika Dharmapala & Thomas J. Miceli, 2012. "Search, Seizure and (False?) Arrest: An Analysis of Fourth Amendment Remedies when Police can Plant Evidence," Working papers 2012-37, University of Connecticut, Department of Economics.
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Cited by:
  1. Mehmet Bac, 2009. "An economic rationale for firing whistleblowers," European Journal of Law and Economics, Springer, vol. 27(3), pages 233-256, June.
  2. Dhammika Dharmapala & Thomas J. Miceli, 2003. "Search, Seizure and (False?) Arrest: An Analysis of Fourth Amendment Remedies when Police can Plant Evidence," Working papers 2003-37, University of Connecticut, Department of Economics.

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