Why do diverse groups outperform homogeneous groups in some settings, but not in others? We show that while diverse groups experience more frictions than homogeneous ones, they are also less conformist. Homogeneous groups minimize the risk of miscoordination, but they may get stuck in an...

Why do diverse groups outperform homogeneous groups in some settings, but not in others? We show that while diverse groups experience more frictions than homogeneous ones, they are also less conformist. Homogeneous groups minimize the risk of miscoordination, but they may get stuck in an...

This paper presents a novel mechanism under which diversity affects performance even if it has no direct impact on payoffs. Diversity matters because it influences the degree of strategic uncertainty that players face. We model this by incorporating the dual process account of Theory of Mind...

We consider a dynamic matching problem where players are repeatedly assignedtasks and can choose whether to accept or reject them. Players prefer to avoidcertain tasks (“hot potatoes”) while other tasks give a positive payoff (“sweet pota-toes”). There are frictions in the matching...