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Working Papers Regulating
Spillovers in Teamwork (with Huseyin Yildirim) Abstract: We study team incentives
with positive spillovers and rewards based on ex-post public credit for
individual contributions to collective success. Compared to ex-ante optimal
credit allocation, higher-ability or lower-cost agents are over-credited
ex-post and, thus, over-motivated for team success when the spillover rate is
too low and under-credited/under-motivated when it is too high. Therefore,
organizations may limit communication and transparency between team members
to induce optimal effort. Alternatively, they may carefully select team
members to diffuse credit-sharing concerns. These concerns also make
lower-ability agents less likely to invite collaborators or choose the most
capable for their projects. |
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