Team Composition & Conditional Cooperation: Temporary Agents Permanent Agents or Both?

On the workplace agents differ in length of their contract. Nevertheless there is no extensive research on the optimal composition of teams regarding contracts. I will investigate theoretically the optimal team composition for different levels of conditional co-operators in society. Conditional co-operators are inclined to cooperate if other people also cooperate. In empirical research the existence of conditional co-operators is extensively discussed and proven. By adding renewable temporary contracts and mutual learning my analysis will be extended. I have found the following main results. If more than half of society consists out of conditional co-operators, two permanent agents is the optimal composition. If there are only few or no conditional co-operators in society, two temporary agents is the optimal composition. For shares of conditional co-operators in society in between, a mixed team is optimal.