Carmen, Bevia; C, Corchón Luis - In: The B.E. Journal of Theoretical Economics 6 (2006) 1, pp. 1-27
We present a model of cooperative production in which rational agents might carry out sabotage activities that decrease output. We provide necessary and sufficient conditions for the existence of a Nash equilibrium without sabotage. It is shown that the absence of sabotage in equilibrium depends...