On February 7, 2018, 13.00-14.00, Dr. Fabio Tufano (University of Nottingham,https://www.nottingham.ac.uk/economics/people/fabio.tufano) will give a talk on “Revealing the Economic Consequences of Group Cohesion” (with Simon Gächter and Chris Starmer).
Below you find an abstract of Fabio’s paper, which can be found at http://www.nottingham.ac.uk/cedex/documents/papers/cedex-discussion-paper-2017-09.pdf
We introduce the concept of “group cohesion” to capture the economic consequences of ubiquitous social relationships in group production. We measure group cohesion, adapting the “oneness scale” from psychology. A comprehensive program of new experiments reveals the considerable economic impact of cohesion: higher cohesion groups are significantly more likely to achieve Pareto-superior outcomes in classic weak-link coordination games. We show that effects of cohesion are economically large, robust, and portable. We identify social preferences as a primary mechanism explaining the effects of cohesion. Our results provide proof of concept for group cohesion as a productive new tool of economic research.