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Costs of Control in Groups

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  • Gerhard Riener
  • Simon Wiederhold

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Abstract

This paper explores the role of social groups in explaining the reaction to control.We propose a simple model with a principal using control devices and a controlledagent, which incorporates the existence of social groups. Testing experimentally theconjectures derived from the model and related literature, we find that agents in socialgroups (i) perform more than other (no-group) agents; (ii) expect less control thanno-group agents; (iii) decrease their performance substantially when actual controlexceeds their expectation, while no-group agents do not react; (iv) do not reciprocatewhen facing less control than expected, while no-group agents do.

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Bibliographic Info

Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 113.

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Date of creation: 2011
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Handle: RePEc:ces:ifowps:_113

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  8. Dufwenberg, Martin & Muren, Astri, 2006. "Generosity, anonymity, gender," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 42-49, September.
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