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We study the effect of group size on cooperation in voluntary contribution mechanism games. As in previous experiments, we study four- and eight-person groups in high and low marginal per capita return (MPCR) conditions. We find a positive effect of group size in the low MPCR condition, as in...
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. We consider both a piece rate compensation scheme, where pay depends solely on own performance, and a team compensation … scheme, where pay also depends on the performance of other team members. Overall, we find some evidence that subjects who are … observed increase productivity at least initially when compensation is team based, while we find that subjects observing react …
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This paper tests social identity theory with respect to individuals' self-identification behavior. We report results … from a laboratory experiment in which subjects choose their group membership, which is interpreted as decision to identify … with the predictions from social identity theory: Subjects have a higher valuation for identifying with groups with a …
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