On the heels of our 450 test, there is an interesting post over at Organizations and Markets about some empirical work on Alchian & Demsetz’s team production problem. The issue at hand is, of course, how to enhance cooperative behavior.

We find that neither verbal framing with company cues nor the recruitment test have a significant effect on cooperation enhancement whereas the introduction of normative codes of conduct significantly boosts cooperation. This effect is even stronger when codes of conduct are combined with the recruitment test.

Looks like an interesting piece and a potential future classroom experiment.

No mention of the effects of firing the grocer, however.