IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/4702.html

Joint Production in Teams

Author

Listed:
  • Battaglini, Marco

Abstract

Consider Holmström.s moral hazard in teams problem when there are n agents, each agent i has a a(i)-dimensional strategy space and output can be m-dimensional. We show that a compensation mechanism that satisfies budget balance, limited liability and implements an efficient allocation generically exists if and only if Sum_a(i)/(n-1)

Suggested Citation

  • Battaglini, Marco, 2004. "Joint Production in Teams," CEPR Discussion Papers 4702, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4702
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP4702
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David A. Miller & Kareen Rozen, 2011. "Optimally Empty Promises and Endogenous Supervision," Cowles Foundation Discussion Papers 1823, Cowles Foundation for Research in Economics, Yale University, revised Jun 2012.
    2. Jian Wang & Xintian Zhuang & Jun Yang & Jiliang Sheng, 2014. "The effects of optimism bias in teams," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3980-3994, November.
    3. Gershkov, Alex & Li, Jianpei & Schweinzer, Paul, 2016. "How to share it out: The value of information in teams," Journal of Economic Theory, Elsevier, vol. 162(C), pages 261-304.
    4. Béatrice Roussillon & Paul Schweinzer, 2010. "Efficient emissions reduction," Economics Discussion Paper Series 1004, Economics, The University of Manchester.
    5. Bond, Philip & Pande, Rohini, 2007. "Coordinating development: Can income-based incentive schemes eliminate Pareto inferior equilibria?," Journal of Development Economics, Elsevier, vol. 83(2), pages 368-391, July.
    6. Poblete, Joaquín, 2015. "Profit sharing and market structure," International Journal of Industrial Organization, Elsevier, vol. 39(C), pages 10-18.
    7. Pierre Fleckinger & David Martimort & Nicolas Roux, 2024. "Should They Compete or Should They Cooperate? The View of Agency Theory," Journal of Economic Literature, American Economic Association, vol. 62(4), pages 1589-1646, December.
    8. Jungho Lee, 2020. "Estimating the benefits and costs of forming business partnerships," RAND Journal of Economics, RAND Corporation, vol. 51(2), pages 531-562, June.
    9. Jianpei Li, 2009. "Team production with inequity-averse agents," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(2), pages 119-136, August.
    10. Matthew McGinty, 2014. "Strategic Incentives in Teams: Implications of Returns to Scale," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 474-488, October.
    11. Hitoshi Matsushima, 2010. "Role Of Relative And Absolute Performance Evaluations In Intergroup Competition," The Japanese Economic Review, Japanese Economic Association, vol. 61(4), pages 443-454, December.
    12. Alex Gershkov & Jianpei Li & Paul Schweinzer, 2009. "Efficient tournaments within teams," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 103-119, March.
    13. Babaioff, Moshe & Feldman, Michal & Nisan, Noam & Winter, Eyal, 2012. "Combinatorial agency," Journal of Economic Theory, Elsevier, vol. 147(3), pages 999-1034.
    14. Felipe Caro & Charles J. Corbett & Tarkan Tan & Rob Zuidwijk, 2013. "Double Counting in Supply Chain Carbon Footprinting," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 545-558, October.
    15. Sanjith Gopalakrishnan & Daniel Granot & Frieda Granot & Greys Sošić & Hailong Cui, 2021. "Incentives and Emission Responsibility Allocation in Supply Chains," Management Science, INFORMS, vol. 67(7), pages 4172-4190, July.
    16. Sun, Yang & Zhao, Wei, 2024. "Relative performance evaluation in spillover networks," Games and Economic Behavior, Elsevier, vol. 145(C), pages 285-311.
    17. Áron Kiss, 2009. "Coalition politics and accountability," Public Choice, Springer, vol. 139(3), pages 413-428, June.
    18. Gershkov, Alex & Li, Jianpei & Schweinzer, Paul, 2006. "Collective Production and Incentives," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 186, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    19. Blumrosen, Liad & Feldman, Michal, 2013. "Mechanism design with a restricted action space," Games and Economic Behavior, Elsevier, vol. 82(C), pages 424-443.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:4702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.