
Teamwork and collaboration are increasingly important. To help understand the dynamics of teamwork skill formation, the authors provide the first systematic analysis of dynamic investment in teamwork skill. First, adopting a dynamic game approach, they construct a theoretical framework where investment in team skill creates persistent benefits and externalities for teammates, but where investment is risky because the benefits depend on successful team coordination. Second, they take this framework to the laboratory to gain insight into factors that influence dynamic investment in team skill. They find under-investment compared to the efficient benchmark. However, investment in team skill responds strongly to incentives, in line with specific patterns predicted by their theory. They also find that people’s theory of mind and propensity to coordinate predict how much they invest in team skill. The authors conclude that careful design of team incentives and selection of team members can facilitate the dynamic development of teamwork skills.
Date & Time:
9:30-11:15, Thursday, March 5, 2026
*The seminar will be held online*
Speaker:
Victoria PROWSE, Professor of Economics, Marge Magner Chair, Purdue University
Coordinator: Dr. Stacey H. Chen (GraSPP, UTokyo)
Registration:
Pre-registration is required: Registration Form