Not just hot air: normative codes of conduct induce cooperative behavior |
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| Authors: | Thomas Lauer Bettina Rockenbach Peter Walgenbach |
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| Affiliation: | (1) Microeconomics, Organization Theory and Management, University of Erfurt, Erfurt, Germany;(2) Microeconomics, University of Erfurt, Erfurt, Germany;(3) Organization Theory and Management, University of Erfurt, Erfurt, Germany |
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| Abstract: | The shirking incentives arising within team production are in general counteracted by monitoring and sanctioning. However, these mechanisms are usually associated with high monitoring costs and cannot be applied to all parts of the production process. In a laboratory experiment we analyze the impact of less costly elements of organizational structure, such as normative codes of conduct and screening tests, on team production efficiency. We find that more allusions to a firm context lead to higher contributions. In particular, codes of conduct significantly increase cooperation and at the same time reduce free-riding behavior. Our study provides empirical evidence that normative codes of conduct are an effective means of increasing team production efficiency. |
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| Keywords: | Public good Framing Team production Codes of conduct |
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