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Free Riding and Workplace Democracy – Heterogeneous Task Preferences and Sorting

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  • Kenju Kamei

    (Business School, Durham University, United Kingdom)

  • Thomas Markussen

    (Department of Economics, University of Copenhagen, Denmark)

Abstract

A novel laboratory experiment is used to show that mismatching between task preferences and task assignment undermines worker productivity and leads to free riding in teams. We elicit task preferences from all workers. Workers’ endogenous sorting into tasks significantly improves productivity under individual-based remuneration (performance pay). Under team-based remuneration (revenue sharing), free riding is significant, but almost exclusively among those working on undesired tasks. Task selection by majority voting in teams alleviates free riding, but only partly so, because some workers are still assigned to undesired tasks. Our findings have broad implications for research using real effort tasks.

Suggested Citation

  • Kenju Kamei & Thomas Markussen, 2020. "Free Riding and Workplace Democracy – Heterogeneous Task Preferences and Sorting," Discussion Papers 19-14, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:1914
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    Cited by:

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    3. Thomas Markussen & Jean-Robert Tyran, 2023. "Is There a Dividend of Democracy? Experimental Evidence from Cooperation Games," CESifo Working Paper Series 10616, CESifo.
    4. Hsiao, Yu-Chin & Kemp, Simon & Servátka, Maroš & Ward, Matt & Zhang, Le, 2021. "Time Costs and Search Behavior," MPRA Paper 105412, University Library of Munich, Germany.

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    More about this item

    Keywords

    free riding; team; workplace democracy; experiment; real effort;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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