Voluntary Teaming and Effort



Discussion Papers 745

Abstract

Abstract

In a series of experimental games, each of two players may choose between remuneration
based on either private or team effort. Although at least one of the players has the subgame
perfect equilibrium strategy to choose remuneration based on private effort, we frequently
observe team remuneration chosen by both players. Team remuneration allows for high pay-
off for each player for cooperation, but at the same time provides individual incentives to take
a free ride on the other player's effort. Due to significant cooperation we observe that in team
remuneration participants make higher profits than in private remuneration. We also observe
that, when participants are not given the option of private remuneration, they cooperate sig-
nificantly less.

Keywords: Team effort, voluntary collaboration, experimental economics

JEL classification: C72, C90, H41, J33



More intriguing information

1. The name is absent
2. The name is absent
3. Smith and Rawls Share a Room
4. The name is absent
5. Naïve Bayes vs. Decision Trees vs. Neural Networks in the Classification of Training Web Pages
6. SOME ISSUES CONCERNING SPECIFICATION AND INTERPRETATION OF OUTDOOR RECREATION DEMAND MODELS
7. Contribution of Economics to Design of Sustainable Cattle Breeding Programs in Eastern Africa: A Choice Experiment Approach
8. Multiple Arrhythmogenic Substrate for Tachycardia in a
9. Skills, Partnerships and Tenancy in Sri Lankan Rice Farms
10. CHANGING PRICES, CHANGING CIGARETTE CONSUMPTION