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Teams promise but do not deliver

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  • Nielsen, Kirby
  • Bhattacharya, Puja
  • Kagel, John H.
  • Sengupta, Arjun

Abstract

Individuals and two-person teams play a hidden-action trust game with pre-play communication. We replicate previous results for individuals that non-binding promises increase cooperation rates, but this does not extend to teams. While teams promise to cooperate at the same rate as individuals, they consistently renege on those promises. Additional treatments begin to explore the basis for team behavior. We rule out explanations hypothesizing that concern for partner's payoff drives team outcomes, as absent within-team communication, promise fulfillment rates increase compared to individuals. Rather, the results are consistent with the idea that communication between teammates provides support for self-serving behavior.

Suggested Citation

  • Nielsen, Kirby & Bhattacharya, Puja & Kagel, John H. & Sengupta, Arjun, 2019. "Teams promise but do not deliver," Games and Economic Behavior, Elsevier, vol. 117(C), pages 420-432.
    • Handle: RePEc:eee:gamebe:v:117:y:2019:i:c:p:420-432
    DOI: 10.1016/j.geb.2019.07.013
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    Cited by:

    1. Hu, Youxin & Kagel, John & Yang, Huanxing & Zhang, Lan, 2020. "The effects of pre-play communication in a coordination game with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 403-415.
    2. Giovanni Di Bartolomeo & Martin Dufwenberg & Stefano Papa, 2023. "Promises and partner-switch," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 9(1), pages 77-89, June.
    3. Benjamin Wegener, 2021. "How to Analyze Communication Data from Laboratory Experiments Without Being a Machine Learning Specialist," Journal of Economics and Behavioral Studies, AMH International, vol. 13(1), pages 32-56.
    4. Behnk, Sascha & Hao, Li & Reuben, Ernesto, 2022. "Shifting normative beliefs: On why groups behave more antisocially than individuals," European Economic Review, Elsevier, vol. 145(C).
    5. Lisa Bruttel & Gerald Eisenkopf & Juri Nithammer, 2024. "Pre-election communication in public good games with endogenous leaders," CEPA Discussion Papers 73, Center for Economic Policy Analysis.
    6. Ayala Arad & Kevin P. Grubiak & Stefan P. Penczynski, 2024. "Does communicating within a team influence individuals’ reasoning and decisions?," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 109-129, March.
    7. Tebbe, Eva & Wegener, Benjamin, 2022. "Is natural language processing the cheap charlie of analyzing cheap talk? A horse race between classifiers on experimental communication data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Trust game; Hidden-action; Non-binding communication; Teams versus individuals;
    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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