If detecting such behavior were cos

If detecting such behavior were costless,
neither party would have an incentive
to shirk, because neither could impose
the cost of his shirking on the other (if
their cooperation was agreed to voluntarily).
But since costs must be incurred
to monitor each other, each input owner
will have more incentive to shirk when he
works as part of a team, than if his performance
could be monitored easily or if
he did not work as a team. If there is a
net increase in productivity available by
team production, net of the metering cost
associated with disciplining the team, then
team production will be relied upon rather
than a multitude of bilateral exchange of
separable individual outputs.