Effort and Performance: What Distinguishes Interacting and Non-interacting Groups from Individuals?

Title: Effort and Performance: What Distinguishes Interacting and Non-interacting Groups from Individuals?
Format: Journal Article
Publication Date: March 2014
Description:

We study how group membership affects behavior both when group members can and cannot interact with each other. Our goal is to isolate the contrasting forces that spring from group membership: a free-riding incentive leading to reduced effort and a sense of social responsibility that increases effort. In an environment with varying task difficulty and individual decision making as the benchmark, we show that the free-riding effect is stronger. Group members significantly reduce their effort in situations where they share the outcome but are unable to communicate. When group members share outcomes and can interact, they outperform groups without communication and individuals. We show that these groups do as well as the best constituent member would have done on her own.

Ivan Allen College Contributors:
External Contributors: Cary Deck, Sarah Marx Quintanar, Sudipta Sarangi, and Mikhael Shor
Citation:

Besedes, Tibor, Cary Deck, Sarah Quintanar, Sudipta Sarangi, and Mikhael Shor. "Effort and Performance: What Distinguishes Interacting and Non-interacting Groups from Individuals?" Southern Economic Journal 81, no. 2 (2014):  294-322.

Categories:
  • Behavioral Economics
  • Experimental Economics
  • Uncertainty and Decision-Making
Related Links:
Related Departments:
  • School of Economics