DOI: 10.25136/2409-8647.2020.2.29852

Abstract: The subject of this research is the barriers that must be overcome by a collective of individual for the effective use of their self-governance and self-organization resources. It is assumed that members of the collective are capable to jointly create an additional cost by making individual efforts. Value of the expected gross income increases with the efforts put by each agent, and subordinated to the law of diminishing returns. The goal of each member of the collective consists in maximization of the own individual profit. Within the framework of mathematical modeling, it is demonstrated that in the regime of independent choice of the volume of applied effort, the agents achieve outcome that is the equilibrium by Nash, but inefficient by Pareto. Each member of the collective due to their egoistic intentions is interested in applying the limited amount of efforts that meet the maximum of his individual profit, but all his partners should apply as much efforts as possible. Overcoming of ineffective equilibrium requires coordination of efforts invested by all members of the collective. As follows from the model, the main obstacles on the way to effective usage of human resources by a collective in the regime of self-organization and self-governance is a post-contractual opportunism in form of shirking. The free-rider problem and motivation to opportunistic behavior are generated by the desire of each member of the collective to maximization of their own individual profit in the conditions of force of the law of diminishing returns.

DOI: 10.25136/2409-8647.2020.2.29856

Abstract: The subject of this research is opportunities for effective use of human capital members of the collective in the conditions of self-governance and self-organization resources. It is assumed that members of the collective are capable to jointly create an additional cost by making individual efforts. Value of the expected gross income increases with the efforts put by each agent, and subordinated to the law of diminishing returns. The goal of each member of the collective consists in maximization of the own individual profit. Overcoming ineffective equilibrium faced by the collective as a result of independent choice of amount of effort applied by the members, and achievement of Pareto-preferred outcome requires corresponding coordination of collective actions. The key goal of coordination consists in overcoming opportunistic behaviors in form of shirking and such setting of incentive system that would results in application of optimal efforts by all members of the collective. Within the framework of mathematical model structured on the general principles, the author determines the essential conditions for achieving this goal. One of them dictates a corresponding strategy, another one – formulates the ex post rule of distribution of value of the expected gross income, perceived by all members of the collective as ex ante. According to this rule, the portion of each member of the collective in gross income must be equal his portion of efforts. Acceptance of this rule allows implementing a strategy, which motivates each member of the collective to apply efforts that would meet the maximal combined profit.

DOI: 10.25136/2409-8647.2020.2.30246

Abstract: The subject of this research is opportunities for effective use of human capital members of the collective in the conditions of self-governance and self-organization resources. It is assumed that members of the collective are capable to jointly create an additional cost by making individual efforts. Value of the expected gross income increases with the efforts put by each agent, and subordinated to the law of diminishing returns. The goal of each member of the collective consists in maximization of the own individual profit. Achievement of the socially optimal level of applied efforts requires coordination of actions based on the high level of trust between all members of the collective. Within the framework of mathematical model, it is demonstrated that the lack of trust to some extent can be compensated by the incentives based on the use of violence potential. Most successful implementation of such type of incentives is possible only in the relatively small collectives in the conditions of inevitability of punishment for violation, and cautions use of force. In large collectives, a low probability of punishment for violence turns out either in low significance of the expected punishment, or extremely high meaning of nominal punishment. In first instance, a threat of punishment can play a role of a constraining factor; while on the other instances – lead to a stiff punishment that may reduce the usefulness of a violator to an extremely low level. Therefore, the achieved by the collective result can be incomparable by Pareto even with Nash equilibrium.