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Cooperation in Ongoing Organizations

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  • Jacques Cremer

Abstract

This paper argues that overlapping games can provide a natural theory of long-lived organizations. It shows that participation in organizations of infinite duration changes the incentives of agents with finite lives, and will induce more cooperation than a static model would predict. After developing the general theory, we apply it to the description of career paths in organizations and show that it can be optimal to give the youngest workers the most arduous tasks.

Suggested Citation

  • Jacques Cremer, 1986. "Cooperation in Ongoing Organizations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 33-49.
    • Handle: RePEc:oup:qjecon:v:101:y:1986:i:1:p:33-49.
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    File URL: http://hdl.handle.net/10.2307/1884640
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