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Collaboration between and within groups

Author

Listed:
  • Iaryczower, Matias

    (Department of Politics, Princeton University)

  • Oliveros, Santiago

    (Department of Economics, University of Bristol)

  • Parihar, Parth

    (Center of Excellence for Negotiations and Analytics, BASF)

Abstract

We study the ability of multi-group teams to undertake binary projects in a decentralized environment. The equilibrium outcomes of our model display familiar features in collaborative settings, including inefficient gradualism, inaction, and contribution cycles, wherein groups alternate taking responsibility for moving the project forward. Expected delay grows more than proportionally with project size, and some welfare-enhancing projects are not completed, even as agents become arbitrarily patient. A team composed of two equally large groups can complete larger projects than a fully homogeneous team, even as the difference in preferences for completion among the two groups is arbitrarily small. Moreover, if the project is sufficiently large, the two-group team always completes the project strictly faster.

Suggested Citation

  • Iaryczower, Matias & Oliveros, Santiago & Parihar, Parth, 0. "Collaboration between and within groups," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:6680
    as

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    File URL: http://econtheory.org/ojs/index.php/te/article/viewForthcomingFile/6680/45288/1
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    More about this item

    Keywords

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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