The Network for Integrated Behavioural Science  
University of Nottingham
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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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