Incentives and the Structure of Teams
29 Pages Posted: 28 Feb 2009
Date Written: February 27, 2009
This paper endogenizes the matching structure of teams in a simple environment with moral hazard. We show that team incentive problems may, on their own, generate monotone matching predictions in the absence of complementarities or anti-complementarities in production technology. We also derive sufficient conditions on the primitives of the model leading to the optimality of positive and negative matching of team members.
Keywords: Moral hazard, teams, complementarity
JEL Classification: L23; L20
Suggested Citation: Suggested Citation