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When, and why, do teams benefit from self-selection?

Author

Listed:
  • Mira Fischer

    (WZB Berlin Social Science Center)

  • Rainer Michael Rilke

    (Economics Group, WHU - Otto Beisheim School of Management)

  • B. Burcin Yurtoglu

    (Finance Group, WHU - Otto Beisheim School of Management)

Abstract

We investigate the effect of team formation and task characteristics on performance in high-stakes team tasks. In two field experiments, randomly assigned teams performed significantly better than self-selected teams in a task that allowed for an unequal work distribution. The effect was reversed if the task required the two team members to contribute more equally. Investigating mechanisms, we observe that teams become more similar in ability and report to cooperate better when team members can choose each other. We show how different levels of skill complementarity across tasks may explain our results: If team performance largely depends on the abilities of one team member, random team assignment may be preferred because it leads to a more equal distribution of skills across teams. However, if both team members’ abilities play a significant role in team production, the advantage of random assignment is reduced, and the value of team cooperation increases.

Suggested Citation

  • Mira Fischer & Rainer Michael Rilke & B. Burcin Yurtoglu, 2023. "When, and why, do teams benefit from self-selection?," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 749-774, September.
  • Handle: RePEc:kap:expeco:v:26:y:2023:i:4:d:10.1007_s10683-023-09800-2
    DOI: 10.1007/s10683-023-09800-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Team performance; Self-selection; Field experiment;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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