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The market for talent: Competition for resources and self governance in teams

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  • Abhijit Ramalingam

    (University of East Anglia)

  • Brock V. Stoddard

    (University of South Dakota)

  • James M. Walker

    (Indiana University)

Abstract

We experimentally investigate the effect of naturally occurring competition for the resources of team members with ‘divided loyalties’ on the ability of teams to overcome the free-rider problem associated with the provision of public goods. We find that such competition alone creates ‘winners’ and ‘losers’. However, if groups are able to determine their membership, they are able to attract the ‘loyalties’ of all team members. By eschewing the study of additional mechanisms that require external intervention or alterations of payoff functions, our work highlights the role played by implicit market competition and endogenous self-governance of membership in promoting cooperation.

Suggested Citation

  • Abhijit Ramalingam & Brock V. Stoddard & James M. Walker, 2016. "The market for talent: Competition for resources and self governance in teams," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-15, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:wcbess:16-15
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    Cited by:

    1. Takeuchi, Ai & Seki, Erika, 2023. "Coordination and free-riding problems in the provision of multiple public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 95-121.
    2. Abhijit Ramalingam & Brock V. Stoddard & James M. Walker, 2021. "Naturally occurring enhancements to competition for talent in teams​," GRU Working Paper Series GRU_2021_021, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    3. Abhijit Ramalingam & Brock V. Stoddard & James M. Walker, 2020. "Naturally occurring enhancements to competition for talent in teams," Working Papers 21-02, Department of Economics, Appalachian State University.

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    More about this item

    Keywords

    public goods; experiment; divided loyalties; competition; resources; endogenous membership;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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