 Repeated Interaction in Teams: Tenure and PerformanceManagement Science, 2020, vol. 66, issue 3, 1496-1507 Abstract: Many of the activities performed in firms are done by teams, where a common output is observed, but outsiders cannot observe the individual contributions of each team member. This leads to the possibility of some of the members of the team free-riding on the contributions of others. Repeated interactions of a team can then potentially lead to cooperation among the members of the team under the credible threat of returning to a free-riding equilibrium. However, repeated interaction under cooperation of a team may lead to decreasing overall output over time because the benefits of the team working together may exogenously decrease over time. This then leads to the optimal duration of a team being finite but stochastic, creating inefficiency, but being sufficiently long so that the elements of the team have an incentive to cooperate. This provides a theory of successive team formation and termination in a firm. The possibility for a too long duration for full team cooperation may then lead the firm to reduce the extent of team cooperation, to be able to reduce the expected duration of a team, and have fewer losses of the team lasting for too long. Keywords: sales force; competitive strategy; teams; cooperation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:66:y:2020:i:3:p:1496-1507 Access Statistics for this article More articles in Management Science from INFORMS Contact information at EDIRC. |
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