A Model for Team Managers in the Presence of Self-Serving Workers
29 Pages Posted: 5 Dec 2006
Date Written: October 2006
Abstract
We develop a model of team formation in which workers learn about their level of ability. We show that insufficient cooperation may arise as workers learn positively about their own skills. We then build a model for team managers and establish that their objectivity in assessing coworkers' abilities may facilitate cooperation among agents. This is the case because managers are able to design team contracts based on workers' true performances. Our work provides a motive for the existence of team managers in the absence of asymmetry of information.
Keywords: Team management, Self-serving biases, Self-managed teams
JEL Classification: C72, D23, D82, K12, M12, M14, M54
Suggested Citation: Suggested Citation