Decision–Making and Implementation in Teams∗
نویسندگان
چکیده
We study a team whose members choose a joint project and exert individual efforts to implement it. Members have private information about the productivities of alternative projects. We find conditions under which information fails to be shared and the most productive project fails to be selected. While the concealment of information can be efficient, the team’s incentive to conceal is inefficiently strong. Information sharing can be improved through delegation of authority and by the use of contracts. We derive the sharing rule and team size that maximize the likelihood with which the team selects the most productive project. JEL classification: D02, D23, L29.
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