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On the effect of social norms on performance in teams with distributed decision makers

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  • Ravshanbek Khodzhimatov
  • Stephan Leitner
  • Friederike Wall

Abstract

Social norms are rules and standards of expected behavior that emerge in societies as a result of information exchange between agents. This paper studies the effects of emergent social norms on the performance of teams. We use the NK-framework to build an agent-based model, in which agents work on a set of interdependent tasks and exchange information regarding their past behavior with their peers. Social norms emerge from these interactions. We find that social norms come at a cost for the overall performance, unless tasks assigned to the team members are highly correlated, and the effect is stronger when agents share information regarding more tasks, but is unchanged when agents communicate with more peers. Finally, we find that the established finding that the team-based incentive schemes improve performance for highly complex tasks still holds in presence of social norms.

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  • Ravshanbek Khodzhimatov & Stephan Leitner & Friederike Wall, 2021. "On the effect of social norms on performance in teams with distributed decision makers," Papers 2104.05993, arXiv.org, revised Apr 2021.
    • Handle: RePEc:arx:papers:2104.05993
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    References listed on IDEAS

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    1. Friederike Wall & Stephan Leitner, 2020. "Agent-based Computational Economics in Management Accounting Research: Opportunities and Difficulties," Papers 2011.03297, arXiv.org.
    2. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    3. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    4. Paul Fischer & Steven Huddart, 2008. "Optimal Contracting with Endogenous Social Norms," American Economic Review, American Economic Association, vol. 98(4), pages 1459-1475, September.
    5. Verel, Sébastien & Liefooghe, Arnaud & Jourdan, Laetitia & Dhaenens, Clarisse, 2013. "On the structure of multiobjective combinatorial search space: MNK-landscapes with correlated objectives," European Journal of Operational Research, Elsevier, vol. 227(2), pages 331-342.
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    Cited by:

    1. Ravshanbek Khodzhimatov & Stephan Leitner & Friederike Wall, 2022. "Controlling replication via the belief system in multi-unit organizations," Papers 2206.03786, arXiv.org.

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