Equal Pay for Unequal Work: Limiting Sabotage in Teams

Arup Bose, Debashis Pal () and David Sappington

Journal of Economics & Management Strategy, 2010, vol. 19, issue 1, 25-53

Abstract: We demonstrate the value of “equal pay” policies in teams, even when team members have distinct abilities and make different contributions to team performance. A commitment to compensate all team members in identical fashion eliminates the incentive that each team member otherwise has to sabotage the activities of teammates in order to induce the team owner to implement a more favorable reward structure. The reduced sabotage benefits the team owner, and can secure Pareto gains under plausible circumstances.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://doi.org/10.1111/j.1530-9134.2009.00244.x

Related works:
Working Paper: Equal Pay for Unequal Work: Limiting Sabotage in Teams (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jemstr:v:19:y:2010:i:1:p:25-53

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().