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Unpublished Paper
Sharing and Anti-Sharing in Teams
(2006)
  • Robert D Cooter, University of California, Berkeley
  • Roland Kirstein
Abstract

Compared to budget-balanced Sharing contracts, Anti-Sharing may improve the efficiency of teams. The Anti-Sharer collects a fixed payment from all team members; he receives the actual output and pays out its value to them. If a team members becomes Anti-Sharer, he will be unproductive in equilibrium. Hence, internal Anti-Sharing fails to yield the first-best outcome. Anti-Sharing is more likely to yield a higher team profit than Sharing, the larger the team, the curvature of the production function, or the marginal effort cost. Sharing is more likely to be better, the greater the marginal product, the cross-partials of the production function, or the curvature of the effort cost.

Keywords
  • Budget-breaker,
  • supermodularity,
  • constrained efficiency.
Disciplines
Publication Date
December, 2006
Citation Information
Robert D Cooter and Roland Kirstein. "Sharing and Anti-Sharing in Teams" (2006)
Available at: http://works.bepress.com/robert_cooter/140/