Corporate Downsizing to Rebuild Team Spirit: How Costly Voting Can Foster Cooperation
AbstractWe propose a new mechanism to achieve coordination through voting, for which we discuss a number of real-life applications. Among them, the mechanism provides for a new theory for downsizing in organizations. A crisis may lead to a decrease in the willingness to cooperate in an organization, and therefore to a bad equilibrium. A consensual downsizing episode may signal credibly that survivors are willing to cooperate, and thus, it may be optimal and efficiency-enhancing (for the individuals remaining in the organization), as the empirical evidence suggests. A variation of the same mechanism leads to “efficient” upsizing.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/3793.
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- Antonio Cabrales & Antoni Calvó-Armengol, 2007. "Corporate Downsizing to Rebuild Team Spirit: How Costly Voting Can Foster Cooperation," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 1016-1042, 09.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
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