Structure of teams—A cooperative game theory approach

Abstract

One key task for HR departments and managers is to design the structure of teams in the firm. Two main dimensions when carrying out this decision are the size of the teams and the combination of specialized expertise within the team. In this article, we apply cooperative game theory to model this decision. First, we introduce production games. These games are an enhancement of team games and allow the modeling of teams. Together with the coalition structure approach of cooperative game theory, we analyze two standard situations of team theory.