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Black Sheep and Walls of Silence

  • Muehlheusser, Gerd

    ()

    (University of Hamburg)

  • Roider, Andreas

    ()

    (University of Regensburg)

In this paper we analyze the frequently observed phenomenon that (i) some members of a team ("black sheep") exhibit behavior disliked by other (honest) team members, who (ii) nevertheless refrain from reporting such misbehavior to the authorities (they set up a "wall of silence"). Much cited examples include hospitals and police departments. In this paper, these features arise in equilibrium. An important ingredient of our model are benefits that agents receive when cooperating with each other in a team. Our results suggest that asymmetric teams where these benefits vary

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1171.

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Length: 35 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1171
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  1. Battaglini, Marco & Bénabou, Roland & Tirole, Jean, 2002. "Self Control in Peer Groups," CEPR Discussion Papers 3149, C.E.P.R. Discussion Papers.
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  13. Nicola Persico, 2002. "Racial Profiling, Fairness, and Effectiveness of Policing," American Economic Review, American Economic Association, vol. 92(5), pages 1472-1497, December.
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