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An Experimental study on the information structure in teams

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Author Info
Sandra Ludwig () (University of Munich)
Christina Strassmair () (University of Munich)
Abstract

Is free-riding in teams reduced when one member receives a signal on his colleagueís performance? And how does free-riding depend on the signal's type? We address these questions in experimental teams in which two agents sequentially exert effort to contribute to the team output. We vary the type of information the second mover receives prior to his effort choice and find that agents work more when signals are available. Overall, behavior differs from predictions of standard theory. Signals that are predicted to have no effect are, in fact, influential and signals that are predicted to have an effect are redundant.

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Publisher Info
Paper provided by SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Papers with number 277.

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Date of creation: Sep 2009
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Handle: RePEc:trf:wpaper:277

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Related research
Keywords: Team production; Free-riding; Experiment; Information; Signal;

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Find related papers by JEL classification:
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

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