The Network for Integrated Behavioural Science  
University of Nottingham
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Summary

We introduce the concept of “group cohesion” to study the economic consequences of social relationships in team production. We measure group cohesion, adapting the “oneness scale” from psychology to group level. A series of experiments, including a pre-registered replication, reveals that higher cohesion groups are more likely to achieve Pareto-superior outcomes in weaklink coordination games. Judged against benchmarks, the effects of cohesion are economically large. We identify beliefs rather than social preferences as a primary mechanism explaining the effects of cohesion. Our comprehensive evidence establishes group cohesion as a powerful production factor and a useful
new tool of economic research.

Details: CeDEx Working Paper 2019-16 (PDF)

Authors:   Simon Gaechter, Chris Starmer and Fabio Tufano

 

 

Posted on Monday 6th January 2020

NIBS - Network for Integrated Behavioural Science

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