Usual explanations of the gains from
cooperative behavior rely on exchange
and production in accord with the comparative
advantage specialization principle
with separable additive production.
However, as suggested above there is a
source of gain from cooperative activity
involving working as a team, wherein individual
cooperating inputs do not yield
identifiable, separate products which can
be summed to measure the total output.
For this cooperative productive activity,
here called "team" production, measuring
marginal productivity and making payments
in accord therewith is more expensive
by an order of magnitude than for
separable production functions.
Team production, to repeat, is production
in which 1) several types of resources
are used and 2) the product is not a sum
of separable outputs of each cooperating
resource. An additional factor creates a
team organization problem-3) not all resources
used in team production belong to
one person.
Usual explanations of the gains from
cooperative behavior rely on exchange
and production in accord with the comparative
advantage specialization principle
with separable additive production.
However, as suggested above there is a
source of gain from cooperative activity
involving working as a team, wherein individual
cooperating inputs do not yield
identifiable, separate products which can
be summed to measure the total output.
For this cooperative productive activity,
here called "team" production, measuring
marginal productivity and making payments
in accord therewith is more expensive
by an order of magnitude than for
separable production functions.
Team production, to repeat, is production
in which 1) several types of resources
are used and 2) the product is not a sum
of separable outputs of each cooperating
resource. An additional factor creates a
team organization problem-3) not all resources
used in team production belong to
one person.
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