EFFICIENT LARGE‐SIZE COORDINATION VIA VOLUNTARY GROUP FORMATION: AN EXPERIMENT

B-Tier
Journal: International Economic Review
Year: 2017
Volume: 58
Issue: 2
Pages: 651-668

Authors (4)

Chun‐Lei Yang (not in RePEc) Mao‐Long Xu (not in RePEc) Juanjuan Meng (Peking University) Fang‐Fang Tang (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Efficient coordination in large groups is a fundamental issue in economic organizations. We consider the weak‐link game with the feature of economies of scale that is necessary for voluntary group growth, in a minimal setup with exit and merger options. We show that large groups with efficient outcomes prevail in most communities. Seed groups form that seem to set a norm of both maximal effort level and mutual trust that there will be no panic when seeing noisy dips. Initial doubters are eventually converted into norm abiders. A restart further speeds up the process of coordination success.

Technical Details

RePEc Handle
repec:wly:iecrev:v:58:y:2017:i:2:p:651-668
Journal Field
General
Author Count
4
Added to Database
2026-01-26