Team Formation and Self-serving Biases
AbstractThere exists extensive evidence that people learn positively about themselves. We build on this finding to develop a model of team formation in the workplace. We show that learning positively about oneself systematically undermines the formation of teams. Agents becoming overconfident tend to ask for an excessive share of the group outcome. Positive learning generates divergence in workers' beliefs and hampers efficient team formation. This result is shown to be robust to high degrees of workers' sophistication. We finally apply our model to co-authorship and organizational issues.
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Bibliographic InfoPaper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 09/07.
Length: 43 pages
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Web page: http://www.unav.es/facultad/econom
Teams; Self-serving biases; Behavioral contract theory;
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
- M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management
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