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Why Join a Team?

Author

Listed:
  • David Cooper

    (FSU - Florida State University [Tallahassee])

  • Krista Saral

    (UNC - University of North Carolina [Charlotte] - UNC - University of North Carolina System)

  • Marie Claire Villeval

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract
We present experiments exploring why high ability workers join teams with less able co-workers when there are no short-term financial benefits. We distinguish between two explanations: pro-social preferences and expected long-term financial gains from teaching future teammates. Participants perform a real-effort task and decide whether to work independently or join a two-person team. Treatments vary the payment scheme (piece rate or revenue sharing), whether teammates can communicate, and the role of teaching. High ability workers are more willing to join teams in the absence of revenue sharing and less willing to join teams when they cannot communicate. When communication is possible, the choice of high ability workers to join teams is driven by expected future financial gains from teaching rather than some variety of pro-social preferences. This result has important implications for the role of adverse selection in determining the productivity of teams.

Suggested Citation

  • David Cooper & Krista Saral & Marie Claire Villeval, 2019. "Why Join a Team?," Working Papers halshs-02295921, HAL.
    • Handle: RePEc:hal:wpaper:halshs-02295921
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02295921
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    File URL: https://shs.hal.science/halshs-02295921/document
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    Other versions of this item:

    • Cooper, David J. & Saral, Krista & Villeval, Marie Claire, 2019. "Why Join a Team?," IZA Discussion Papers 12587, Institute of Labor Economics (IZA).
    • David J. Cooper & Krista Saral & Marie Claire Villeval, 2021. "Why Join a Team?," Post-Print halshs-03003653, HAL.
    • David J. Cooper & Krista Saral & Marie Claire Villeval, 2019. "Why Join a Team?," Working Papers 1928, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.

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    Cited by:

    1. Fischer, Mira & Rilke, Rainer Michael & Yurtoglu, B. Burcin, 2020. "Two field experiments on self-selection, collaboration intensity, and team performance," Discussion Papers, Research Unit: Market Behavior SP II 2020-201, WZB Berlin Social Science Center.

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    More about this item

    Keywords

    Teams; teaching; revenue sharing; social preferences; self-selection; experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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