on the efficiency of team-based meritocracies
According to theory a pure meritocracy is efficient because individual members are competitively rewarded according to their individual contributions to society. However, purely individually based meritocracies seldom occur. We introduce a new model of social production called “team-based meritocracy” (TBM) in which individual members are rewarded based on their team membership. We demonstrate that as long as such team membership is both mobile and competitively based on contributions, individuals are able to tacitly coordinate a complex and counterintuitive asymmetric equilibrium that is close to Pareto-optimal, possibly indicating that such a group-based meritocracy could be a social structure to which humans respond with particular ease. Our findings are relevant to many contemporary societies in which rewards are at least in part determined via membership in organizations such as for example firms, and organizational membership is increasingly determined by contribution rather than privilege.
|Date of creation:||07 Jan 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Giovanna Devetag & Andreas Ortmann, 2007.
"When and why? A critical survey on coordination failure in the laboratory,"
Springer, vol. 10(3), pages 331-344, September.
- Giovanna Devetag & Andreas Ortmann, 2006. "When and Why? A Critical Survey on Coordination Failure in the Laboratory," CEEL Working Papers 0605, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
- Giovanna Devetag & Andreas Ortmann, 2006. "When and Why? A Critical Survey on Coordination Failure in the Laboratory," CERGE-EI Working Papers wp302, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Talbot Page & Louis Putterman & Bulent Unel, 2005.
"Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency,"
Royal Economic Society, vol. 115(506), pages 1032-1053, October.
- Talbot Page & Louis Putterman & Bulent Unel, 2002. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Working Papers 2002-19, Brown University, Department of Economics.
- van Damme, E.E.C., 2000.
2000-115, Tilburg University, Center for Economic Research.
- Van Damme, Eric, 2002. "Strategic equilibrium," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 41, pages 1521-1596 Elsevier.
- Enrique Fatas & Tibor Neugebauer & Javier Perote, 2005.
"Within-Team Competition in the Minimum Effort Coordination Game,"
- Enrique Fatas & Tibor Neugebauer & Javier Perote, 2006. "Within-Team Competition In The Minimum Effort Coordination Game," Pacific Economic Review, Wiley Blackwell, vol. 11(2), pages 247-266, 06.
- Brown, James N & Rosenthal, Robert W, 1990. "Testing the Minimax Hypothesis: A Re-examination of O'Neill's Game Experiment," Econometrica, Econometric Society, vol. 58(5), pages 1065-81, September.
- R. Isaac & David Schmidtz & James Walker, 1989. "The assurance problem in a laboratory market," Public Choice, Springer, vol. 62(3), pages 217-236, September.
- Shogren, Jason F., 1997. "Self-interest and equity in a bargaining tournament with non-linear payoffs," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 383-394, March.
- Campbell, Carl M, III & Kamlani, Kunal S, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 759-89, August.
- Kandel, E. & Lazear, E.P., 1990.
"Peer Pressure and Partnerships,"
90-07, Rochester, Business - Managerial Economics Research Center.
- Harsanyi, John C., 1995.
"A new theory of equilibrium selection for games with complete information,"
Games and Economic Behavior,
Elsevier, vol. 8(1), pages 91-122.
- Harsanyi John C., 1995. "A New Theory of Equilibrium Selection for Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 10(2), pages 318-332, August.
- Douglas L. Kruse, 1993. "Profit Sharing: Does It Make a Difference?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ps, March.
- Mark Isaac, R. & McCue, Kenneth F. & Plott, Charles R., 1985.
"Public goods provision in an experimental environment,"
Journal of Public Economics,
Elsevier, vol. 26(1), pages 51-74, February.
- Isaac, R. Mark & McCue, Kenneth F. & Plott, Charles R., . "Public Goods Provision in an Experimental Environment," Working Papers 428, California Institute of Technology, Division of the Humanities and Social Sciences.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, June.
- Tibor Neugebauer & Susana Cabrera & Enrique Fatas & Juan A. Lacomba, 2012. "Vertically Splitting a Firm: Promotion and Demotion in a Team Production Experiment," LSF Research Working Paper Series 12-3, Luxembourg School of Finance, University of Luxembourg.
- GARY-BOBO, Robert J., .
"On the existence of equilibrium points in a class of asymmetric market entry games,"
CORE Discussion Papers RP
-905, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gary-Bobo, Robert J., 1990. "On the existence of equilibrium points in a class of asymmetric market entry games," Games and Economic Behavior, Elsevier, vol. 2(3), pages 239-246, September.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
- Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
- Simon Gächter & Christian Thöni, 2005.
"Social Learning and Voluntary Cooperation Among Like-Minded People,"
Journal of the European Economic Association,
MIT Press, vol. 3(2-3), pages 303-314, 04/05.
- Simon Gächter & Christian Thöni, 2004. "Social learning and voluntary cooperation among like-minded people," University of St. Gallen Department of Economics working paper series 2004 2004-12, Department of Economics, University of St. Gallen.
- Milgrom, Paul & Roberts, John, 1990. "The Efficiency of Equity in Organizational Decision Processes," American Economic Review, American Economic Association, vol. 80(2), pages 154-59, May.
- T. K. Ahn & R. Mark Isaac & Timothy C. Salmon, 2008. "Endogenous Group Formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(2), pages 171-194, 04.
- Isaac, R Mark & Walker, James M, 1988.
"Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism,"
The Quarterly Journal of Economics,
MIT Press, vol. 103(1), pages 179-99, February.
- R. M. Isaac & J. M. Walker, 2010. "Group size effects in public goods provision: The voluntary contribution mechanism," Levine's Working Paper Archive 310, David K. Levine.
- Mark Walker & John Wooders, 2001. "Minimax Play at Wimbledon," American Economic Review, American Economic Association, vol. 91(5), pages 1521-1538, December.
- Rapoport, Amnon & Eshed-Levy, Dalit, 1989. "Provision of step-level public goods: Effects of greed and fear of being gypped," Organizational Behavior and Human Decision Processes, Elsevier, vol. 44(3), pages 325-344, December.
- Rapoport, Amnon & Seale, Darryl A. & Winter, Eyal, 2002. "Coordination and Learning Behavior in Large Groups with Asymmetric Players," Games and Economic Behavior, Elsevier, vol. 39(1), pages 111-136, April.
- Crawford, Vincent P & Haller, Hans, 1990. "Learning How to Cooperate: Optimal Play in Repeated Coordination Games," Econometrica, Econometric Society, vol. 58(3), pages 571-95, May.
- Burdett, Kenneth & Coles, Melvyn G, 1999. "Long-Term Partnership Formation: Marriage and Employment," Economic Journal, Royal Economic Society, vol. 109(456), pages F307-34, June.
- repec:ner:tilbur:urn:nbn:nl:ui:12-91439 is not listed on IDEAS
- Lazear, Edward P, 1989. "Pay Equality and Industrial Politics," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 561-80, June.
- Selten, Reinhard, 1994. "Descriptive Approaches to Cooperation," Discussion Paper Serie B 292, University of Bonn, Germany.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:8627. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.