Abstract
We study team formation in real-effort experiments in which participants bargain over a jointly produced outcome. Participants decide between undertaking a task alone or with another participant by releasing the minimum share of the future team outcome that they are willing to accept. We find that the equality norm prevails in a context in which merit could play an important role. The inability of high-ability individuals to claim a large share of the joint profits makes the dissolution of inefficient teams difficult, and results in unprofitable cooperation.
Original language | English |
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Pages (from-to) | 347-355 |
Number of pages | 9 |
Journal | Journal of Socio-Economics |
Volume | 40 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2011 Aug |
Externally published | Yes |
Keywords
- Equity and equality norms
- Experiments
- Team formation
ASJC Scopus subject areas
- Economics and Econometrics