Individual selection criteria for optimal team composition

Abstract

In this paper, we derive necessary and sufficient conditions on team based tasks in order for a selection criterion applied to individuals to produce optimal teams. We assume only that individuals have types and that a team’s performance depends on its size and the type composition of its members. We first derive the selection principle which states that if a selection criterion exists, it must rank types by homogeneous team performance, the performance of a team consisting only of that type. We then prove that a selection criterion exists if and only if replacing the team’s lowest ranked type, as measured by homogeneous team performance, with a higher ranked type increases team performance. Finally, we show that the replace the lowest ranked property rules out most common types of team complementarities, including benefits to diverse types and types that fill structural holes.