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Growing groups, cooperation, and the rate of entry

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  • Eva Ranehill
  • Frédéric Schneider
  • Roberto A. Weber

Abstract

We study the stability of voluntary cooperation in response to varying group growth rates. Using a laboratory public-good game, we construct a situation where increasing group size yields potential efficiency gains, but only with sustained cooperation. We then study the effect of exogenously varying growth rates on cooperation. Slow growth yields higher cooperation rates and welfare than fast growth, both for incumbents and entrants, which is consistent with optimistic self-reinforcing beliefs persisting under slower growth. Allowing incumbent group members to select growth rates also sustains high cooperation rates, but growth stalls at intermediate group sizes, leaving potential efficiency gains unrealized.

Suggested Citation

  • Eva Ranehill & Frédéric Schneider & Roberto A. Weber, 2012. "Growing groups, cooperation, and the rate of entry," ECON - Working Papers 103, Department of Economics - University of Zurich, revised May 2013.
    • Handle: RePEc:zur:econwp:103
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    References listed on IDEAS

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    Cited by:

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    3. Otten, Kasper & Buskens, Vincent & Przepiorka, Wojtek & Ellemers, Naomi, 2021. "Cooperation between newcomers and incumbents: The role of normative disagreements," Journal of Economic Psychology, Elsevier, vol. 87(C).
    4. Kasper Otten & Ulrich J. Frey & Vincent Buskens & Wojtek Przepiorka & Naomi Ellemers, 2022. "Human cooperation in changing groups in a large-scale public goods game," Nature Communications, Nature, vol. 13(1), pages 1-11, December.

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    More about this item

    Keywords

    Voluntary cooperation; experiment; public good game;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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