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My teammate, myself and I: Experimental evidence on equity and equality norms

  • Corgnet, Brice
  • Sutan, Angela
  • Veszteg, Róbert F.

Abstract We study team formation in real-effort experiments in which participants bargain over a jointly produced outcome. Participants decide between undertaking a task alone or with another participant by releasing the minimum share of the future team outcome that they are willing to accept. We find that the equality norm prevails in a context in which merit could play an important role. The inability of high-ability individuals to claim a large share of the joint profits makes the dissolution of inefficient teams difficult, and results in unprofitable cooperation.

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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 4 (August)
Pages: 347-355

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Handle: RePEc:eee:soceco:v:40:y:2011:i:4:p:347-355
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