Reputation in Team Production

Amihai Glazer and B. Segendorff

Working Papers from California Irvine - School of Social Sciences

Abstract: Consider team production with two people. Each person is characterized by a prior distribution that he will do Right or Wrong. After the outcome of the project is observed, these probabilities are updated. When output depends on the weakest link in production, following project failure the posterior probability that a person did Right is smaller the greater the probability that the other worder did Right. The same holds when output depends on the best shot in production and the team effort succeeded.

Keywords: PRODUCTION; PROBABILITY; REPUTATION (search for similar items in EconPapers)
JEL-codes: D24 D30 (search for similar items in EconPapers)
Date: 2000

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