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Optimal incentive power for inter-team competition

Author

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  • Matsuzawa, Satoshi

Abstract

This article investigates optimal incentive power for team competition. We show that the optimal incentive power, represented by the elasticity of a sharing rule, is proportional to the firm’s output elasticity with respect to teams’ output and team size.

Suggested Citation

  • Matsuzawa, Satoshi, 2024. "Optimal incentive power for inter-team competition," Economics Letters, Elsevier, vol. 239(C).
    • Handle: RePEc:eee:ecolet:v:239:y:2024:i:c:s0165176524002167
    DOI: 10.1016/j.econlet.2024.111733
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    More about this item

    Keywords

    Team production; Relative performance evaluation; Free-rider problems;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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