Strategic feedback ın teams: theory and experimental evidence

Abstract

We theoretically and experimentally analyze public and private feedback in teams that are characterized by different performance technologies. We consider a setting where the principal has some performance relevant private information and can either report this information truthfully or strategically withhold feedback. We find that if team performance is determined by the best performer (the "best-shot technology"), then both public and private feedback are better than no feedback unless the team is composed of all low performers, in which case no feedback is best. If, on the other hand, team performance is determined by the worst performer (the weakest-link technology), then no feedback is the best regime unless the team is composed of all high performers, in which-case public or private feedback is better. Our results have implications for feedback policies in teams, organizations, and the workplace.