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Title:Black Sheep and Walls of Silence PDF Logo
Authors:Roider, Andreas
Muehlheusser, Gerd
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1171
Abstract:In this paper we analyze the frequently observed phenomenon that (i) some members of a team ("black sheep") exhibit behavior disliked by other (honest) team members, who (ii) nevertheless refrain from reporting such misbehavior to the authorities (they set up a "wall of silence"). Much cited examples include hospitals and police departments. In this paper, these features arise in equilibrium. An important ingredient of our model are benefits that agents receive when cooperating with each other in a team. Our results suggest that asymmetric teams where these benefits vary across team members are especially prone to the above mentioned phenomenon.
Subjects:teams
misbehavior
wall of silence
asymmetric information
JEL:D82
C73
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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