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Promises in group decision making

Valeria Faralla, Guido Borà (), Alessandro Innocenti and Marco Novarese ()

Research in Economics, 2020, vol. 74, issue 1, 1-11

Abstract: We assess in the laboratory the effect of promises on group decision-making. The gift-exchange game provides the testing ground for our experiment. When the game is played between groups, inter-group cooperation and reciprocity represent a condition for increasing total earnings as a measure of social efficiency. Our findings show that promises have positive effect on aggregate payoffs and that effect is reinforced when a group member is randomly selected as proposer to set forth an effort/transfer level that other group members can approve or reject. Promises and proposers elicit social conformity leading groups to exhibit more desirable social behavior.

Keywords: Group decision; Promise; Gift-exchange game; Social efficiency (search for similar items in EconPapers)
JEL-codes: D81 D83 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Promises in Group Decision Making (2018) Downloads
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DOI: 10.1016/j.rie.2019.11.001

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