In: Economics
Students at a nearby college often complain about assignments requiring group work. The statement “I could have done a better job by myself” is often heard. a. Explain why group work, in which everyone in the group receives the same grade, is a public good. b. Is the quality complaint heard by students consistent with what theory might suggest? c. Explain how the incentive to free-ride manifests itself in group work.
In assignments requiring group work, the problem that often arises is that not every group member will contribute equally. Everyone will still expect to get the best grades, and to get the same grades as the other group members.
a. Explain why group work, in which everyone in the group receives the same grade, is a public good.
In terms of the benefits, i.e., the grade, they are non rival and non excludable. Once a student is the member of a group, it is assumed that he or she will get the same grades as the others.
Non rival means that one student's good grade doesn't reduce that of others. Non excludable means you can't exclude any group member from getting the same grade as others.
b. Is the quality complaint heard by students consistent with what theory might suggest?
Yes, the complaint is consistent with theory.
Theory suggests that being a public good, no one actually takes responsibility for the quality. There may always be a student or two who are really hard working and quality conscious. Due to their efforts, everyone else benefits. The group assignment becomes similar to a public good, where no one claims ownership for the quality.
c. Explain how the incentive to free-ride manifests itself in group work.
The free rider problem manifests itself in such assignments, because everyone wants the benefits, but no one wants to work hard. This leads to too much burden falling on one or two members, and thus leading to a type of "market failure", where the group fails to perform well.
A solution to this is, include a component of individual evaluation within the group assignment. Make it clear to the students that everyone will not get the same grade - they have to perform well individually as well.