Rational Sabotage in Cooperative Production with Heterogeneous Agents

Carmen Bevia ()
Authors registered in the RePEc Author Service: Luis C. Corchon

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: We present a model of cooperative production in which rational agents might carry out sabotage activities that decrease output. We provide necessary and sufficient conditions for the existence of a Nash equilibrium without sabotage. It is shown that the absence of sabotage in equilibrium depends on the interplay between technology, relative productivity of agents and the degree of meritocracy. In particular we show that, ceteris paribus, meritocratic systems give more incentives to sabotage than egalitarian systems.

Keywords: Cooperative; production; Sharing; rules; Sabotage (search for similar items in EconPapers)
JEL-codes: D20 D72 D78 J54 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (2)

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Journal Article: Rational Sabotage in Cooperative Production with Heterogeneous Agents (2006)
Working Paper: Rational Sabotage in Cooperative Production with Heterogeneous Agents (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we20090204

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