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Group Formation in a Public Good Experiment

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  • Joep H. Sonnemans

    ()
    (University of Amsterdam)

  • Frans van Dijk

    (Ministry of Justice, The Hague)

  • Frans A.A.M. van Winden

    ()
    (University of Amsterdam)

Abstract

Economic behavior often takes place in groups of small numbers of peopleinteracting with each other (like work teams, neighborhoods, socialnetworks, etc.). Characteristic of such interaction is the development of(affective) interpersonal relationships, or social ties. According tosociologists, the embeddedness of economic behavior in networks of socialties has a profound impact on economic performance. Although, in economics,there is a growing awareness of the significance of social factors, thestudy of social dynamics is still in its infancy. In this paper weinvestigate experimentally the development of social ties structures, andthereby the formation of informal groups, through economic interaction in apublic good environment. It turns out that complicated dynamics arise fromindividual differences in social value orientation and (affective) responsepatterns. Our findings point at the importance of leadership in controllingand channeling emotions and sentiments to build effective groups, liketeams or communities. This leads to a different perspective on managementthan the one provided by standard agency theory. This discussion paper has led to a publication in the Journal of Economic Psychology (2006), 27, 187-204.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-093/1.

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Date of creation: 08 Dec 1999
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Handle: RePEc:dgr:uvatin:19990093

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Related research

Keywords: Laboratory; Individual Behavior; Public Goods; Relation of Economics to Social Values;

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  1. Frans van Dijk & Joep Sonnemans & Frans van Winden, 2000. "Social Ties in a Public Good Experiment," CESifo Working Paper Series 273, CESifo Group Munich.
  2. Akerlof, George A, 1983. "Loyalty Filters," American Economic Review, American Economic Association, American Economic Association, vol. 73(1), pages 54-63, March.
  3. John O. Ledyard, 1994. "Public Goods: A Survey of Experimental Research," Public Economics, EconWPA 9405003, EconWPA, revised 22 May 1994.
  4. Rotemberg, Julio J, 1994. "Human Relations in the Workplace," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(4), pages 684-717, August.
  5. Hollander, Heinz, 1990. "A Social Exchange Approach to Voluntary Cooperation," American Economic Review, American Economic Association, American Economic Association, vol. 80(5), pages 1157-67, December.
  6. Coleman, James S, 1984. "Introducing Social Structure into Economic Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 74(2), pages 84-88, May.
  7. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1999. "Strategic behavior in public good games: when partners drift apart," Economics Letters, Elsevier, Elsevier, vol. 62(1), pages 35-41, January.
  8. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, . "Law and Finance," Working Paper 19451, Harvard University OpenScholar.
  9. Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 359-64, May.
  10. Offerman, Theo & Sonnemans, Joep & Schram, Arthur, 1996. "Value Orientations, Expectations and Voluntary Contributions in Public Goods," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 817-45, July.
  11. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1998. "Public good provision and public bad prevention: The effect of framing," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 34(1), pages 143-161, January.
  12. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(5), pages 841-77, October.
  13. Keser, Claudia & van Winden, Frans, 2000. " Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 102(1), pages 23-39, March.
  14. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number beck81-1.
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