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Collaboration Between and Within Groups

Author

Listed:
  • Matias Iaryczower
  • Santiago Oliveros
  • Parth Parihar

Abstract

We study the ability of multi-group teams to undertake binary projects in a decentralized environment. The equilibrium outcomes of our model display familiar features in collaborative settings, including inefficient gradualism, inaction, and contribution cycles, wherein groups alternate taking responsibility for moving the project forward. Expected delay grows more than proportionally with project size, and some welfare-enhancing projects are not completed, even as agents become arbitrarily patient. A team composed of two equally large groups can complete larger projects than a fully homogenous team, even as the difference in preferences for completion among the two groups is arbitrarily small. Moreover, if the project is sufficiently large, the two-group team always completes the project strictly faster.

Suggested Citation

  • Matias Iaryczower & Santiago Oliveros & Parth Parihar, 2022. "Collaboration Between and Within Groups," NBER Working Papers 30656, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30656
    Note: POL
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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