Coordination with endogenous groups

The endogenous choice of groups can have an important effect on coordination behavior, but it is an underexplored area of research. In this study, I examine how endogenous group choice affects coordination in a laboratory setting using the minimum-effort game. Most studies on coordination use randomly assigned groups, with some showing that successful coordination can be achieved if the subjects have some social interaction. This study shows that an alternative strategy to improving coordination behavior and equilibrium play is to allow subjects some choice over their group membership.