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Coordination and Motivation in Flat Hierarchies: The Impact of the Adjudication Culture

Rabindra Nath Chakraborty and Ernst Mohr

Economica, 2005, vol. 72, issue 288, 563-576

Abstract: This paper considers a variation of the partnership game with imperfect public information, in which teams are semi‐autonomous. The only hierarchical intervention in teamwork is when a superior is called in by a team member to adjudicate alleged cases of free‐riding or unjustified lateral punishment (flat hierarchy) according to publicly known adjudicative rules (adjudication culture), using for statistical inference a publicly known organizational norm for teamwork cooperation. It is shown that it is advantageous to set a non‐elitist organizational teamwork norm. Furthermore, fairness in adjudication is valuable for economic reasons alone.

Date: 2005
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https://doi.org/10.1111/j.1468-0335.2005.00432.x

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