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Dynamic production teams with strategic behavior

✍ Scribed by Michèle Breton; Pascal St-Amour; Désiré Vencatachellum

Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
270 KB
Volume
27
Category
Article
ISSN
0165-1889

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✦ Synopsis

We analyze if intergenerational teams reveal workers' productivities. Some uncertainty on agents' productivities persists when (i) each agent must work independently, or (ii) technological shocks are agent-speciÿc in compulsory teams. However, when technological shocks are team-speciÿc in compulsory teams, each worker's productivity is revealed. When agents choose to work independently or in teams, that problem falls in the class of dynamic games. Elective teams are preferred by high-productivity young workers when the technological shocks are agent-speciÿc, and maximize the expected utility of a young worker when shocks are team-speciÿc.

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