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Teams Contribute More and Punish Less

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  • Thum, Marcel
  • Auerswald, Heike
  • Schmidt, Carsten
  • Torsvik, Gaute

Abstract

Many decisions in politics and business are made by teams rather than by single individuals. In contrast, economic models typically assume an individual rational decision maker. A rapidly growing body of (experimental) literature investigates team decisions in different settings. We study team decisions in a public goods contribution game with a costly punishment option and compare it to the behavior of individuals in a laboratory experiment. We also consider different team decision-making rules (unanimity, majority). We find that teams contribute significantly more and punish less than individuals, regardless of the team decision rule. Overall, teams yield higher payoffs than individuals.

Suggested Citation

  • Thum, Marcel & Auerswald, Heike & Schmidt, Carsten & Torsvik, Gaute, 2014. "Teams Contribute More and Punish Less," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100537, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100537
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    Cited by:

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    2. Rategh, Yalda & Tamannaei, Mohammad & Zarei, Hamid, 2022. "A game-theoretic approach to an oligopolistic transportation market: Coopetition between incumbent systems subject to the entrance threat of an HSR service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 144-171.
    3. Cox, Caleb A. & Stoddard, Brock, 2018. "Strategic thinking in public goods games with teams," Journal of Public Economics, Elsevier, vol. 161(C), pages 31-43.
    4. Kamei, Kenju, 2017. "Altruistic Norm Enforcement and Decision-Making Format in a Dilemma: Experimental Evidence," MPRA Paper 76641, University Library of Munich, Germany.
    5. Yoshitaka Okano, 2017. "Team vs. Individual, Hypothesis Testing vs. Model Selection, and the Minimax Model," Working Papers SDES-2017-18, Kochi University of Technology, School of Economics and Management, revised Oct 2017.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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