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Voluntary Teaming and Effort

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  • Claudia Keser
  • Claude Montmarquette

Abstract

In a series of experimental 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 each player for cooperation, 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.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.76532.de/dp745.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 745.

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Length: 39 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp745

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Keywords: Team effort; voluntary collaboration; experimental economics;

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References

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  1. Holt, Charles A. & Laury, Susan K., 2008. "Theoretical Explanations of Treatment Effects in Voluntary Contributions Experiments," Handbook of Experimental Economics Results, Elsevier.
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  9. Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, vol. 85(4), pages 891-904, September.
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Citations

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Cited by:
  1. 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.
  2. Boun My, Kene & Chalvignac, Benoît, 2010. "Voluntary participation and cooperation in a collective-good game," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 705-718, August.
  3. Sabrina Teyssier, 2008. "Les Modes de Rémunération comme MécanismesSélectifs de la Main d'oeuvre : Fondements Théoriques et Estimations Empiriques," Post-Print halshs-00303703, HAL.
  4. 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).
  5. 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.

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