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Authors
Advisor(s)
Abstract(s)
This paper analyzes the effi ciency of team production when risk- neutral agents exhibit other-regarding preferences. It is shown that full effi - ciency can be sustained as an equilibrium of a budget-balancing mechanism that punishes some randomly chosen agents if output falls short of the effi cient level but distributes output equally otherwise. The result depends on agents being suffi ciently inequity-averse.
Description
Keywords
Moral hazard Team production Inequity aversion
Pedagogical Context
Citation
Jianpei, Li (2009). "Team production with inequity-averse agents". Portuguese Economic Journal, 8(2):119-136
Publisher
Springer Verlag