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Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a...
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We study how help can be fostered by means of a team bonus in the presence of rank-order tournaments. In a simple model … we combine elements of relative rewards and a team bonus and study their effect on effort, help and sabotage. Quite … intuitively the theoretical analysis suggests that team members help less as relative rewards increase. This problem is mitigated …
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