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Black Sheep and Walls of Silence

  • Gerd Muehlheusser
  • Andreas Roider

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 teams in which the importance of these benefits varies across team members are especially prone to the above mentioned phenomenon

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Paper provided by Universitaet Bern, Departement Volkswirtschaft in its series Diskussionsschriften with number dp0410.

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Date of creation: Jun 2004
Date of revision:
Handle: RePEc:ube:dpvwib:dp0410
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  1. Dhammika Dharmapala & Thomas J. Miceli, 2013. "Search, seizure and false (?) arrest: an analysis of fourth amendment remedies when police can plant evidence," Chapters, in: Research Handbook on Economic Models of Law, chapter 11, pages 208-234 Edward Elgar.
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  12. Mookherjee, Dilip & Png, I P L, 1994. "Marginal Deterrence in Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 1039-66, October.
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  20. repec:rus:hseeco:71401 is not listed on IDEAS
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