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We investigate a competitive labor market with team production. Workers differ in their motivation to exert team effort … weakly lower wages. -- Team work ; self-selection …
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, compete for a prize there is a need for intra-team coordination in order to win the inter-team competition. Introducing … efforts. We use team members' dialogues to explain these effects of communication, and check the robustness of our results. …
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Contests between groups are plagued by intra-group externalities (freeriding). Yet, costless incentive schemes that entirely avoid free-riding within a group might not be desirable, neither individually nor socially. In contests among two groups, a relatively weak (i.e., small or unproductive)...
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