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Team production and gift exchange

Author

Listed:
  • Marta Ruiz-Delgado

    (Programa de Doctorado en Economía y Empresa, Universidad de Málaga)

  • Adriana Alventosa

    (ERI-CES, Universitat de València)

  • Miguel A. Meléndez-Jiménez

    (Departamento de Teoría e Historia Económica, Universidad de Málaga)

  • Antonio J. Morales

    (Departamento de Teoría e Historia Económica, Universidad de Málaga)

Abstract

We report on a laboratory experiment on team production when a principal decides, before contributions are made, how the team output will be allocated between himself and the team members. The allocation determines the marginal per capita rate of contributions. Despite free-riding being the dominant strategy, if workers perceive more generous allocations as a gift by the employer, reciprocity motives may increase contributions. We also explore the impact of communication on the employer's side. Our results show the presence of reciprocity, evidencing that the gift-exchange phenomenon is robust to team production. Regarding communication, we find that messages with a positive connotation significantly increase contributions to the common project.

Suggested Citation

  • Marta Ruiz-Delgado & Adriana Alventosa & Miguel A. Meléndez-Jiménez & Antonio J. Morales, 2025. "Team production and gift exchange," Working Papers 2025-01, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    • Handle: RePEc:mal:wpaper:2025-1
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    File URL: https://theeconomics.uma.es/malagawpseries/Papers/METCwp2025-1.pdf
    File Function: First version, 2025
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    More about this item

    Keywords

    public goods game; gift exchange game; communication; experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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