We study a dynamic model of team production with moral hazard. We show that the players begin to invest effort only … shortly before the time limit when the reward for solving the task is shared equally. We explore how the team can design … investigate how limited liability or the threat of sabotage influences the team's problem. It is further shown that players who …

We re-examine the role of managers in preventing free riding when team inputs are not observable. Holmström (1982 …) shows that managers are necessary due to the team's lack of static incentives to implement budget-breaking group punishments …. We ask whether the team can break its own budget in a repeated game. We develop simple strategies that sustain self …