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A comparison of endogenous and exogenous group formation to increase cooperation

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  • Guido, Andrea
  • Putterman, Louis
  • Romaniuc, Rustam

Abstract

Grouping cooperatively disposed subjects with one another has been shown to slow the decline of contributions in public goods games. So far, similar findings have been obtained both when groups are exogenously formed by the experimenter and when they are endogenously formed by algorithms taking subjects’ preferences for partners into account. We designed an experiment in which internally homogeneous groups – composed of like-minded subjects – can form either exogenously or endogenously, testing the conjecture that endogenously formed groups of cooperators will outperform similar exogenously formed groups due to subjects’ decision rights in the endogenous procedure. We find that the conjecture is not supported, discussing potential explanations.

Suggested Citation

  • Guido, Andrea & Putterman, Louis & Romaniuc, Rustam, 2025. "A comparison of endogenous and exogenous group formation to increase cooperation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 119(C).
    • Handle: RePEc:eee:soceco:v:119:y:2025:i:c:s2214804325001156
    DOI: 10.1016/j.socec.2025.102451
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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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