Bose, Arup ; Pal, Debashis ; Sappington, David E. M. (2010) Equal pay for unequal work: limiting sabotage in teams Journal of Economics and Management Strategy, 19 (1). pp. 25-53. ISSN 1058-6407
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Official URL: http://onlinelibrary.wiley.com/doi/10.1111/j.1530-...
Related URL: http://dx.doi.org/10.1111/j.1530-9134.2009.00244.x
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.
| Item Type: | Article |
|---|---|
| Source: | Copyright of this article belongs to John Wiley and Sons. |
| ID Code: | 68679 |
| Deposited On: | 05 Nov 2011 05:03 |
| Last Modified: | 05 Nov 2011 05:03 |
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