Publication Date: August 2015
This paper studies career concerns in teams where the support a worker receives depends on fellow team members’ eﬀort and ability. In this setting, by exerting eﬀort and providing support, a worker can influence her own and her teammates’ performances in order to bias the learning process in her favor. To manipulate the market’s assessments, we argue that in equilibrium, a worker has incentives to help or even sabotage her colleagues in order to signal that she is of higher ability. In a multiperiod stationary framework, we show that the stationary level of work eﬀort is above and help eﬀort is below their eﬀicient levels.
Career concerns, Team incentives, Incentives to help, Incentives to sabotage
JEL Classification Codes: D83, J24, M54