This paper analyzes the efficiency of team production when agents exhibit other regarding preferences. It is shown that full efficiency can be sustained as an equilibrium through a budget-balancing mechanism that punishes some randomly chosen agents if output falls short of efficient level but...

We study the role of information exchange, leadership and coordination in team or partnership structures. For this purpose, we view individuals jointly engaging in productive processes-a "team"-as endowed with individual and privately held information on the joint production process. Once...

We analyse incentive problems in team and partnership structures where the only available information to condition a contract on is some noisy ranking of the partners' efforts. This enables us to ensure both first best efficient effort levels for all partners and the redistribution of output...