This paper studies team design in the context of a standard risk-neutral principal-agent model with contractual …' technologies in a team in the absence of complementarities in the production technology. I characterize optimal team design and … principal may be biased to hire an inefficiently small team. The results have implications for the heterogeneity of agents in …

Optimal team composition has been the focus of exhaustive analysis, academic and otherwise. Yet, much of this analysis … has ignored possible dynamic effects: e.g., anticipating that team formation is based on prior performance will affect … work individually without monetary incentives and are then assigned to teams of two where compensation is based on team …

interaction among team members positively affects the principal's payoff. Greater team cooperation is successfully induced with … communication on team cooperation in the absence of ongoing team interaction. Fostering communication among team members does not … significantly affect the principal's payoff, suggesting that agents' communication is an imperfect substitute for ongoing team …

performance, in a relational contract between a principal and a team of two agents. A main result is that the optimal incentive …