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Strategic Feedback in Teams: Theory and Experimental Evidence

Author

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  • Seda Ertac

    (Department of Economics, Koç University)

  • Mert Gumren

    (Department of Economics, Koç University)

  • Levent Kockesen

    (Department of Economics, Koç University)

Abstract

We theoretically and experimentally analyze public and private feedback in teams that are characterized by different performance technologies. We consider a setting where the principal can provide truthful information on agents’ performances or strategically withhold feedback. We find that if team performance is determined by the best performer (the “best-shot technology”), then both public and private feedback are better than no feedback unless the team is composed of all low performers, in which case no feedback is best. If, on the other hand, team performance is determined by the worst performer (the weakest-link technology), then no feedback is the best regime unless the team is composed of all high performers, in which case public or private feedback is better. Our results have implications for performance feedback policies in educational settings and the workplace.

Suggested Citation

  • Seda Ertac & Mert Gumren & Levent Kockesen, 2017. "Strategic Feedback in Teams: Theory and Experimental Evidence," Koç University-TUSIAD Economic Research Forum Working Papers 1714, Koc University-TUSIAD Economic Research Forum.
    • Handle: RePEc:koc:wpaper:1714
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    References listed on IDEAS

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    3. Ingebretsen Carlson, Jim & Wu, Tingting, 2022. "Shill bidding and information in eBay auctions: A Laboratory study," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 341-360.
    4. Goulas, Sofoklis & Megalokonomou, Rigissa, 2021. "Knowing who you actually are: The effect of feedback on short- and longer-term outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 589-615.
    5. Anton Riabenko & Elina Tereschenko & Anna Bakurova & Andrii Pyrozhok & Olexiy Kuzkin, 2024. "The graph theoretic formulation of the team formation problem based on the factor of competition," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 4(4(78)), pages 25-30, August.
    6. Gwen-Jiro Clochard & Guillaume Hollard & Julia Wirtz, 2022. "More effort or better technologies? On the effect of relative performance feedback," Bristol Economics Discussion Papers 22/767, School of Economics, University of Bristol, UK.
    7. Dietrichson, Jens & Gudmundsson, Jens & Jochem, Torsten, 2022. "Why don’t we talk about it? Communication and coordination in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 257-278.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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