The paper proposes a mechanism that may implement first-best effort in simultaneous teams. Within the framework of this mechanism, each team members is obliged to make a fixed, non-contingent payment, and chooses his individual effort. After the output is produced, each team member receives a...

In this paper, we make three central arguments. The first important argument questions the implicit assumption of the activity-level effect literature that there is a monotonically increasing relationship between the probability of an accident's occurring and the quantity of the underlying risky...