We are happy to invite you to the next BAMS on Monday, September 7, 2026 at 1.30 pm - 2.45 pm. Click here to add this to your calendar.
Victoria Prowse (Purdue) will present the paper "Dynamic investment and coordination in teams: Theory and experimental evidence" (w/ David Gill, J. Lucas Reddinger).
Location: ESMT as part of the BBE workshop - note the deviation from the usual time slot!
Abstract
Teamwork requires more than the general skills that team members bring. In successful teams, members invest in team-specific skill or capital that accumulates within the team and raises the return to coordinated production. We provide the first systematic analysis of dynamic investment in such team skill. Adopting a dynamic game approach, we develop a novel theoretical framework where investment in team skill creates persistent benefits but is risky because the benefits depend on successful team coordination. We then take this framework to the laboratory to study empirically the factors that influence dynamic investment in team skill. We find underinvestment compared to the efficient benchmark. However, investment responds strongly to incentives, in line with specific theory-predicted patterns. Pre-registered traits (theory of mind and propensity to coordinate) predict investment and team-level efficiency. We conclude that careful design of team incentives and selection of team members can facilitate the development of team skill.
Victoria will be available for 1:1 meetings on the seminar day. Please sign up for a meeting here.
BAMS will resume its regular schedule for the fall term starting September 21, 2026.
The BSoE Applied Micro Seminar (BAMS) is a research seminar, jointly organized by DIW Berlin, Hertie School, HU Berlin, FU Berlin, TU Berlin, WZB, ESMT Berlin, University of Potsdam, European University Viadrina, BCCP, SFB TRR 190, RFBerlin and RWI. BAMS is one of the many activities within the Berlin School of Economics.
For past events and further information, see the BAMS archive and website.
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