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Strategic Feedback in Teams: Theory and Experimental Evidence

Seda Ertac (), Mert Gumren and Levent Koçkesen ()
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Seda Ertac: Department of Economics, Koç University

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: We theoretically and experimentally analyze public and private feedback in teams that are characterized by different performance technologies. We consider a setting where the principal can provide truthful information on agents’ performances or strategically withhold feedback. We find that if team performance is determined by the best performer (the “best-shot technology”), then both public and private feedback are better than no feedback unless the team is composed of all low performers, in which case no feedback is best. If, on the other hand, team performance is determined by the worst performer (the weakest-link technology), then no feedback is the best regime unless the team is composed of all high performers, in which case public or private feedback is better. Our results have implications for performance feedback policies in educational settings and the workplace.

Keywords: Lab experiments; Feedback; Performance feedback; Teams; Strategic communication; Disclosure games; Multiple audiences. (search for similar items in EconPapers)
JEL-codes: C72 C92 D23 D82 D83 M12 M54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-hrm
Date: 2017-09
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Journal Article: Strategic feedback in teams: Theory and experimental evidence (2019) Downloads
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