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Coordination and Motivation in Flat Hierarchies: The Impact of the Adjudication Culture

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  • Rabindra Nath Chakraborty
  • Ernst Mohr

Abstract

This paper considers a variation of the partnership game with imperfect public information, in which teams are semi‐autonomous. The only hierarchical intervention in teamwork is when a superior is called in by a team member to adjudicate alleged cases of free‐riding or unjustified lateral punishment (flat hierarchy) according to publicly known adjudicative rules (adjudication culture), using for statistical inference a publicly known organizational norm for teamwork cooperation. It is shown that it is advantageous to set a non‐elitist organizational teamwork norm. Furthermore, fairness in adjudication is valuable for economic reasons alone.

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  • Rabindra Nath Chakraborty & Ernst Mohr, 2005. "Coordination and Motivation in Flat Hierarchies: The Impact of the Adjudication Culture," Economica, London School of Economics and Political Science, vol. 72(288), pages 563-576, November.
  • Handle: RePEc:bla:econom:v:72:y:2005:i:288:p:563-576
    DOI: 10.1111/j.1468-0335.2005.00432.x
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    1. Casson, Mark, 1991. "The Economics of Business Culture: Game Theory, Transaction Costs, and Economic Performance," OUP Catalogue, Oxford University Press, number 9780198283751.
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