Abstract
This paper shows that in the dichotomous collective choice model, there is a Pareto improvement if individual rewards are contingent on both the individual's and the team's correct decision, and not solely on the latter. Each of the team's members would invest more in human capital than he would without such an incentive.
Original language | English |
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Pages (from-to) | 41-51 |
Number of pages | 11 |
Journal | Labour Economics |
Volume | 2 |
Issue number | 1 |
DOIs | |
State | Published - Mar 1995 |
Keywords
- Decision making
- Free riding
- Human capital
- Incentive schemes