Dynamic Production Teams with Strategic Behavior
AbstractWe analyze the extent to which intergenerational teams provide information on workers' productivity in the long run. We use a dynamic stochastic framework where wages are reputation-based and consider three possible work arrangements. When agents can only work by themselves we show that some uncertainty persists on their productivity at the steady state. Next, our results indicate that when the same technological shocks affect all teammates, then forcing workers to work together reveals their productivity in the steady state. However, some uncertainty on agents' productivities persist in the long run when technological shocks differ across teammates. We also allow workers to choose between working on their own or in a team. In this case the problem falls in the class of dynamic games. We compute the Nash-equilibrium work strategies, the direction of inter-workers transfers and the steady-state distribution of wages and utility. Elective teams are preferred by high-productivity young workers when technological shocks are specific to each teammate, and maximize the expected utility of a young worker when shocks are perfectly correlated
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 89.
Date of creation: 01 Apr 2001
Date of revision:
Contact details of provider:
Web page: http://www.econometricsociety.org/conference/SCE2001/SCE2001.html
More information through EDIRC
Dynamic Games; Reputation; Team Production;
Other versions of this item:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-05-02 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Itoh, Hideshi, 1991. "Incentives to Help in Multi-agent Situations," Econometrica, Econometric Society, vol. 59(3), pages 611-36, May.
- Laband, David N. & Piette, Michael J., 1995. "Team production in economics: division of labor or mentoring?," Labour Economics, Elsevier, vol. 2(1), pages 33-40, March.
- Esteban, J.M. & sakovics, J., 1992.
"Intertemp[oral Transfer Institutions,"
UFAE and IAE Working Papers
172.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Prat, A., 1998. "How Homogeneous Should a Team Be?," Discussion Paper 1998-45, Tilburg University, Center for Economic Research.
- Bhaskar, V., 1994.
"Informational Constraints and the Overlapping Generations Model : Folk and Anti-Folk Theorems,"
1994-85, Tilburg University, Center for Economic Research.
- Bhaskar, V, 1998. "Informational Constraints and the Overlapping Generations Model: Folk and Anti-Folk Theorems," Review of Economic Studies, Wiley Blackwell, vol. 65(1), pages 135-49, January.
- Bhaskar, V., 1994. "Informational Constraints and the Overlapping Generations Model: Folk and Anti-Folk Theorems," Papers 9485, Tilburg - Center for Economic Research.
- Hori, Hajime, 1997. "Dynamic Allocation in an Altruistic Overlapping Generations Economy," Journal of Economic Theory, Elsevier, vol. 73(2), pages 292-315, April.
- Goenka, Aditya & Kelly, David L. & Spear, Stephen E., 1998.
"Endogenous Strategic Business Cycles,"
Journal of Economic Theory,
Elsevier, vol. 81(1), pages 97-125, July.
- Aditya Goenka & David Kelly & Stephen Spear, . "Endogenous Strategic Business Cycles," GSIA Working Papers 2, Carnegie Mellon University, Tepper School of Business.
- Aditya Goenka, David L. Kelly and Stephen E.Spear, . "Endogenous Strategic Business Cycles," Economics Discussion Papers 473, University of Essex, Department of Economics.
- Eric Rasmusen, 1987. "Moral Hazard in Risk-Averse Teams," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 428-435, Autumn.
- Salant, David J., 1991. "A repeated game with finitely lived overlapping generations of players," Games and Economic Behavior, Elsevier, vol. 3(2), pages 244-259, May.
- Alchian, Armen A & Demsetz, Harold, 1972.
"Production , Information Costs, and Economic Organization,"
American Economic Review,
American Economic Association, vol. 62(5), pages 777-95, December.
- Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 972-90, October.
- Sherstyuk, K., 1997.
"Efficiency in Partnership Structures,"
Department of Economics - Working Papers Series
552, The University of Melbourne.
- Vander Veen, Thomas D, 1995. "Optimal Contracts for Teams: A Note," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(4), pages 1051-56, November.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
661465000000000387, David K. Levine.
- Wolinsky, Asher, 1987. "Matching, search, and bargaining," Journal of Economic Theory, Elsevier, vol. 42(2), pages 311-333, August.
- Smith, Lones, 1992. "Folk theorems in overlapping generations games," Games and Economic Behavior, Elsevier, vol. 4(3), pages 426-449, July.
- Kandori, Michihiro, 1992. "Repeated Games Played by Overlapping Generations of Players," Review of Economic Studies, Wiley Blackwell, vol. 59(1), pages 81-92, January.
- Mixon, Franklin Jr., 1997. "Team production in economics: A comment and extension," Labour Economics, Elsevier, vol. 4(2), pages 185-191, June.
- Rosenzweig, Mark R & Wolpin, Kenneth I, 1994. "Parental and Public Transfers to Young Women and Their Children," American Economic Review, American Economic Association, vol. 84(5), pages 1195-1212, December.
- 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.
- Michèle Breton & Pascal St-Amour & Désiré Vencatachellum, 2002. "Inter- vs Intra-generational Production Teams: A Young Worker's Perspective," CIRANO Working Papers 2002s-57, CIRANO.
- Bäker, Agnes & Mertins, Vanessa, 2013.
"Risk-sorting and preference for team piece rates,"
Journal of Economic Psychology,
Elsevier, vol. 34(C), pages 285-300.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.