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Adeline and Bani are a team in a consulting firm. Once a task is assigned, Adeline first decides whether to work separately (S ) or

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Adeline and Bani are a team in a consulting firm. Once a task is assigned, Adeline first decides whether to work separately (S ) or work together (7). Subsequently, Adeline and Bani choose their effort levels. We assume that effort choices are made separately but simultaneously. Let ea and e, denote the level of effort exerted by Adeline and Bani respectively where e; E {0, 1} and i = a, b. If Adeline chooses S, each individual i's payoff is Uj= - _ eitej - ei. 2 If Adeline chooses T Ui = uminfei, ejl - ei, where i, je {a, b} but j # i 2 and min(e;, e;) = e; if e;

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