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Teams Punish Less

Author

Listed:
  • Heike Auerswald
  • Carsten Schmidt
  • Marcel Thum
  • Gaute Torsvik
Abstract
Many decisions in politics and business are made by teams rather than by single individuals. In contrast, economic models typically assume an individual rational decision maker. A rapidly growing body of (experimental) literature investigates team decisions in different settings. We study team decisions in a public goods contribution game with a costly punishment option and compare it to the behavior of individuals in a laboratory experiment. We also consider different team decision-making rules (unanimity, majority). We find that teams contribute significantly more and punish less than individuals, regardless of the team decision rule. Overall, teams yield higher payoffs than individuals.

Suggested Citation

  • Heike Auerswald & Carsten Schmidt & Marcel Thum & Gaute Torsvik, 2013. "Teams Punish Less," CESifo Working Paper Series 4406, CESifo.
    • Handle: RePEc:ces:ceswps:_4406
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    References listed on IDEAS

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    Cited by:

    1. Tan, Fangfang & Xiao, Erte, 2018. "Third-party punishment: Retribution or deterrence?," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 34-46.
    2. Sven Christens & Astrid Dannenberg & Florian Sachs, 2017. "Identification of individuals and groups in a public goods experiment," MAGKS Papers on Economics 201755, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    Keywords

    group decision making; public good; experiment; punishment;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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