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Teams promise but do not deliver

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  • Nielsen, Kirby
  • Bhattacharya, Puja
  • Kagel, John H.
  • Sengupta, Arjun

Abstract

Individuals and two-person teams play a hidden - action trust game with pre - play communication. We replicate previous results for individuals that non-binding promises increase cooperation rates. But this does not extend to teams. Wh ile teams make non-binding promises to cooperate at the same rate as individuals, they consistently renege on those promises. Additional treatments begin to explore the basis for the team outcome, ruling out explanations that team payoff structures drive b ehavior. Analysis of within-team discussions provides insight into the decision-making processes of first and second movers.

Suggested Citation

  • Nielsen, Kirby & Bhattacharya, Puja & Kagel, John H. & Sengupta, Arjun, 2019. "Teams promise but do not deliver," Discussion Papers, Research Unit: Market Behavior SP II 2019-207, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmbh:spii2019207
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    References listed on IDEAS

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    Cited by:

    1. Hu, Youxin & Kagel, John & Yang, Huanxing & Zhang, Lan, 2020. "The effects of pre-play communication in a coordination game with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 403-415.
    2. Giovanni Di Bartolomeo & Martin Dufwenberg & Stefano Papa, 2023. "Promises and partner-switch," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 9(1), pages 77-89, June.
    3. Benjamin Wegener, 2021. "How to Analyze Communication Data from Laboratory Experiments Without Being a Machine Learning Specialist," Journal of Economics and Behavioral Studies, AMH International, vol. 13(1), pages 32-56.
    4. Behnk, Sascha & Hao, Li & Reuben, Ernesto, 2022. "Shifting normative beliefs: On why groups behave more antisocially than individuals," European Economic Review, Elsevier, vol. 145(C).
    5. Lisa Bruttel & Gerald Eisenkopf & Juri Nithammer, 2024. "Pre-election communication in public good games with endogenous leaders," CEPA Discussion Papers 73, Center for Economic Policy Analysis.
    6. Tebbe, Eva & Wegener, Benjamin, 2022. "Is natural language processing the cheap charlie of analyzing cheap talk? A horse race between classifiers on experimental communication data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).

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    More about this item

    Keywords

    trust game; hidden-action; non-binding communication; teams versus individuals;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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