Advanced Search
MyIDEAS: Login

Mutual Monitoring in Teams: The Effects of Residual Claimancy and Reciprocity

Contents:

Author Info

  • Samuel Bowles
  • Herbert Gintis

Abstract

Monitoring by peers in work teams, credit associations, partner- ships, local commons situations, and residential neighborhoods is often an effective means of attenuating incentive problems. Most explanations of the incentives to engage in mutual monitoring rely either on small group size or on a version of the Folk theorem with repeated interactions. We provide an explanation of mutual monitoring in single shot interactions among members of large teams. A key element of our approach is that when team members are residual claimants, some members are motivated by reciprocity norms to punish fellow members when they shirk. We provide evidence for the behavioral relevance of reciprocity norms and we explore the effects team size and the structure of information among team members on the efficacy of mutual monitoring. We conclude with some results specifying conditions under which mutual monitoring in teams provides an effective solution to incentive problems arising from incomplete contracting, as well as conditions under which mutual monitoring is likely to fail.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.ps
Our checks indicate that this address may not be valid because: 404 NOT FOUND (http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.ps [301 MOVED PERMANENTLY]--> http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.ps/). If this is indeed the case, please notify (Thomas Krichel)
Download Restriction: no

File URL: http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.pdf
Our checks indicate that this address may not be valid because: 404 NOT FOUND (http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.pdf [301 MOVED PERMANENTLY]--> http://www.santafe.edu/sfi/publications/Working-Papers/98-08-074.pdf/). If this is indeed the case, please notify (Thomas Krichel)
Download Restriction: no

Bibliographic Info

Paper provided by Santa Fe Institute in its series Research in Economics with number 98-08-074e.

as in new window
Length:
Date of creation: Aug 1998
Date of revision:
Handle: RePEc:wop:safire:98-08-074e

Contact details of provider:
Postal: 1399 Hyde Park Road, Santa Fe, New Mexico 87501
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC

Related research

Keywords: Monitoring; reciprocity;

References

References listed on IDEAS
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.:
as in new window
  1. Besley, T. & Coate, S., 1991. "Group Lending, Repayment Incentives And Social Collateral," Papers 152, Princeton, Woodrow Wilson School - Development Studies.
  2. Black, Jane & de Meza, David & Jeffreys, David, 1996. "House Price, the Supply of Collateral and the Enterprise Economy," Economic Journal, Royal Economic Society, vol. 106(434), pages 60-75, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Abigail Barr, 2003. "Risk Pooling, Commitment, and Information: An experimental test of two fundamental assumptions," Economics Series Working Papers WPS/2003-05, University of Oxford, Department of Economics.
  2. Jeffrey Carpenter, 2002. "Punishing Free Riders: how group size affects mutual monitoring and the provision of public goods," Middlebury College Working Paper Series 0206, Middlebury College, Department of Economics.
  3. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2001. "Monetary and Non-Monetary Punishment in the Voluntary Contributions Mechanism," Post-Print halshs-00151423, HAL.
  4. Carpenter, Jeffrey P. & Matthews, Peter Hans, 2004. "Social Reciprocity," IZA Discussion Papers 1347, Institute for the Study of Labor (IZA).
  5. Jeffrey Carpenter & Peter Matthews & Okomboli Ong'ong'a, 2003. "Why Punish: Social Reciprocity and the Enforcement of Prosocial Norms," Middlebury College Working Paper Series 0213r, Middlebury College, Department of Economics.
  6. Casari, Marco & Luini, Luigi, 2005. "Group Cooperation Under Alternative Peer Punishment Technologies: An Experiment," Purdue University Economics Working Papers 1176, Purdue University, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wop:safire:98-08-074e. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.