Matching with peer monitoring

• 成果类型: Article
• 署名作者: Au, Pak Hung; Chen, Bin R.
• 署名单位: Hong Kong University of Science & Technology; Huazhong University of Science & Technology
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2020.105172
• 发表日期: 2021
• 关键词: peer pressure; Worker heterogeneity; teams; sorting

摘要

Evidence for positive peer effects in production has been well-documented in empirical studies, and these effects are found to be more significant in teams composed of members with heterogeneous abilities. By modeling peer effect as mutual monitoring between members, we show that the total agency cost is minimized by maximizing skill diversities in the teams. This result provides a novel explanation for why worker heterogeneity can strengthen peer effects. (C) 2020 Elsevier Inc. All rights reserved.