@techreport{125977a199f841ae8af4e8420bc3d2dd,
title = "Hierarchy and Opportunism in Teams",
abstract = "We use experiments to compare two institutions for allocating the proceeds of team production.Under revenue-sharing, each team member receives an equal share of team output; under leader-determined shares, a team leader has the power to implement her own allocation.Both arrangements are vulnerable to opportunistic incentives: under revenuesharing team members have an incentive to free-ride, while under leader-determined shares leaders have an incentive to seize team output.We find that most leaders forego the temptation to appropriate team output and manage to curtail free-riding.As a result, compared to revenue-sharing, the presence of a team leader results in a significant improvement in team performance.",
keywords = "team production, leadership, opportunism, experiments",
author = "J.J.M. Potters and M. Sefton and {van der Heijden}, E.C.M.",
note = "Subsequently published in Journal of Economic Behavior and Organization, 2009 Pagination: 32",
year = "2005",
language = "English",
volume = "2005-109",
series = "CentER Discussion Paper",
publisher = "Microeconomics",
type = "WorkingPaper",
institution = "Microeconomics",
}