Facebook to Facebook: Online Communication and Economic Cooperation
Traditionally, direct face-to-face communication has been found more effective for fostering economic cooperation than any form of indirect, mediated communication. We inquire whether this is still the case when most young people routinely use texting and online social media to communicate with each other. We find that young adults in our laboratory public goods experiment are just as adept at finding and sustaining cooperative agreements when communicating within a Facebook group and through online chat as they are in person.
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