Does decentralization of decisions increase the stability of large groups?

Tjaša Bjedov (), Simon Lapointe, Thierry Madiès () and Marie Claire Villeval
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Thierry Madiès: University of Fribourg, Bd. de Pérolles 90, 1700 Fribourg, Switzerland

No 1802, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: Using a laboratory experiment with nested local and global public goods, we analyze the stability of global groups when individuals have the option to separate, according to the degree of decentralization of decision-making. We show that increasing the number of decisions made at the local level within a smaller group reduces the likelihood that individuals vote in favor of a configuration that includes no global good for interacting only within their local group. Voting for such a configuration is more likely when global group members are less cooperative and local group members are more cooperative. Reinforcing local group identity has no impact on votes.

Keywords: Decentralization; break-up of groups; voting behavior; public goods; experiment (search for similar items in EconPapers)
JEL-codes: C91 D72 H77 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cdm, nep-exp and nep-pol
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ftp://ftp.gate.cnrs.fr/RePEc/2018/1802.pdf (application/pdf)

Related works:
Journal Article: Does decentralization of decisions increase the stability of large groups? (2018)
Working Paper: Does decentralization of decisions increase the stability of large groups? (2018)
Working Paper: Does decentralization of decisions increase the stability of large groups? (2018)
Working Paper: Does Decentralization of Decisions Increase the Stability of Large Groups? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1802

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