Group formation and governance

Ludovic Renou

No 08/15, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: This paper studies the impact of the governance of a group, whether be it unanimity, simple majority or qualified majority, on its (endogenously derived) size, composition, and inclination to change the status quo. Somewhat surprisingly, we show that not only unanimity might favor the formation of larger groups than majority, but also a change of status quo.

Keywords: groups; endogenous formation; economies of scale; loss of control; governance; unanimity; majority (search for similar items in EconPapers)
JEL-codes: D7 (search for similar items in EconPapers)
Date: 2008-04, Revised 2008-11
New Economics Papers: this item is included in nep-cdm
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Related works:
Journal Article: Group Formation and Governance (2011)
Working Paper: Group formation and governance (2007)
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