Peer Pressure in Work Teams : The effects of Inequity Aversion
Many empirical studies have shed light on the efficiency of peer pressure. I propose here to model peer pressure by incorporating in the utility function self centered inequity aversion. I find that opportunity for sufficiently inequity averse players to punish their peers, is effective in inducing others to cooperate. At the equilibrium, all players cooperate and punish any shirker since punishing is a way to reduce inequity. Contrary, nobody cooperates without peer pressure even if players are inequity averse.
|Date of creation:||Dec 2002|
|Date of revision:|
|Publication status:||Published in Working Paper du GATE 2002-15. 2002|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00178476|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hirshlifer, David & Rassmusen, Eric, 1989. "Cooperation in a repeated prisoners' dilemma with ostracism," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 87-106, August.
- Barron, John M & Gjerde, Kathy Paulson, 1997. "Peer Pressure in an Agency Relationship," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 234-54, April.
- Ernst Fehr & Klaus M. Schmidt, 1999.
"A Theory of Fairness, Competition, and Cooperation,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 114(3), pages 817-868.
- Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- Engelmann, Dirk & Strobel, Martin, 2000.
"An experimental comparison of the fairness models by Bolton and Ockenfels and by Fehr and Schmidt,"
SFB 373 Discussion Papers
2000,28, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Dirk Engelmann & Martin Strobel, 2000. "An Experimental Comparison of the Fairness Models by Bolton and Ockenfels and by Fehr and Schmidt," Econometric Society World Congress 2000 Contributed Papers 1229, Econometric Society.
- Jones, Derek C & Svejnar, Jan, 1985.
"Participation, Profit Sharing, Worker Ownership and Efficiency in Italian Producer Cooperative,"
London School of Economics and Political Science, vol. 52(208), pages 449-65, November.
- JONES, Derek C. & SVEJNAR, Jan, . "Participation, profit sharing, worker ownership and efficiency in Italian producer cooperatives," CORE Discussion Papers RP 681, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jones, D.C. & Svejnar, J., 1984. "Participation, profit sharing, worker ownership and efficieny in Italian producer cooperatives," CORE Discussion Papers 1984019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rehder, Robert R., 1990. "Japanese transplants: After the honeymoon," Business Horizons, Elsevier, vol. 33(1), pages 87-98.
- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00178476. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.