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Implementation in teams

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  • Shasikanta Nandeibam

Abstract

This paper considers a team production model in which the final output is a function of one or more observable intermediate variables that are functions of the actions of the team members. When there is only one intermediate variable, our model essentially reduces to the standard models in which only the final output is observable. We provide a necessary and sufficient condition for implementing an outcome. This condition imposes restrictions on the possible deviations from the outcome that can be caused by every member of the team unilaterally. As a consequence of this characterization, when there are more than one intermediate variable, we are able to show that in a broad class of problems these intermediate variables may be sufficiently informative to allow sharing rules that implement efficient outcomes. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Shasikanta Nandeibam, 2003. "Implementation in teams," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 569-581, October.
    • Handle: RePEc:spr:joecth:v:22:y:2003:i:3:p:569-581
    DOI: 10.1007/s00199-002-0327-2
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    Cited by:

    1. Beviá, Carmen & Corchón, Luis C., 2009. "Cooperative production and efficiency," Mathematical Social Sciences, Elsevier, vol. 57(2), pages 143-154, March.

    More about this item

    Keywords

    Keywords and Phrases: Team; Sub-team; Intermediate variable; Outcome; Sharing rule; Implementability; Efficiency.; JEL Classification Numbers: D82; J54; D2; C72.;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • D2 - Microeconomics - - Production and Organizations

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