6. Return to Section 24.4’s example of a five-person team facing a group bonus scheme

(a, B) = (0, 1) with a target output of Q* = 5. Using our baseline production and utility functions, we demonstrated there that if Agents 1 through 4 each contributed one unit of effort (for a total of four units), it would then also be in Agent 5’s purely selfish interest to also supply one unit of effort.