Publication: Growing groups, cooperation, and the rate of entry
Growing groups, cooperation, and the rate of entry
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Ranehill, E., Schneider, F., & Weber, R. A. (2013). Growing groups, cooperation, and the rate of entry (No. 103; Working Paper Series / Department of Economics).
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We study the stability of voluntary cooperation in response to varying group growth rates. Using a laboratory public-good game, we construct a situation where increasing group size yields potential efficiency gains, but only with sustained cooperation. We then study the effect of exogenously varying growth rates on cooperation. Slow growth yields higher cooperation rates and welfare than fast growth, both for incumbents and entrants, which is consistent with optimistic self-reinforcing beliefs persisting under slower growth. Allowing
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Citations
Ranehill, E., Schneider, F., & Weber, R. A. (2013). Growing groups, cooperation, and the rate of entry (No. 103; Working Paper Series / Department of Economics).