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Voluntary Teaming and Effort

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  • Claudia Keser
  • Claude Montmarquette

Abstract

In a series of experimental games, each of two players may choose between remuneration based on either private or team effort. Although at least one of the players has the subgame perfect equilibrium strategy to choose remuneration based on private effort, we frequently observe team remuneration chosen by both players. Team remuneration allows for high payoff for each player for cooperation, but at the same time provides individual incentives to take a free ride on the other player's effort. Due to significant cooperation we observe that in team remuneration participants make higher profits than in private remuneration. We also observe that, when participants are not given the option of private remuneration, they cooperate significantly less.
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  • Claudia Keser & Claude Montmarquette, 2004. "Voluntary Teaming and Effort," CIRANO Working Papers 2004s-49, CIRANO.
    • Handle: RePEc:cir:cirwor:2004s-49
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    Cited by:

    1. Boun My, Kene & Chalvignac, Benoît, 2010. "Voluntary participation and cooperation in a collective-good game," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 705-718, August.
    2. Königstein, Manfred & Ruchala, Gabriele K., 2007. "Performance Pay, Group Selection and Group Performance," IZA Discussion Papers 2697, Institute of Labor Economics (IZA).
    3. Pierre Koning & J. Vyrastekova & S. Onderstal, 2006. "Team incentives in public organisations; an experimental study," CPB Discussion Paper 60, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Dargnies, Marie-Pierre, 2011. "Men too sometimes shy away from competition: The case of team competition," Discussion Papers, Research Unit: Market Behavior SP II 2011-201, WZB Berlin Social Science Center.
    5. Sabrina Teyssier, 2008. "Experimental Evidence on Inequity Aversion and Self-Selection between Incentive Contracts," Post-Print halshs-00303727, HAL.
    6. M. Laura Frigotto & Alessandro Rossi, 2012. "Diversity and Communication in Teams: Improving Problem-Solving or Creating Confusion?," Group Decision and Negotiation, Springer, vol. 21(6), pages 791-820, November.
    7. Sabrina Teyssier, 2008. "Les Modes de Rémunération comme MécanismesSélectifs de la Main d'oeuvre : Fondements Théoriques et Estimations Empiriques," Post-Print halshs-00303703, HAL.
    8. Benoît Chalvignac, 2013. "Partnership and trust in gift-exchange games," Working Papers of BETA 2013-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    More about this item

    Keywords

    team effort; workforce management; experimental economics; effort d'équipe; gestion des ressources humaines; économie expérimentale;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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