Efficient coordination in large groups is a fundamental issue in economic organizations. We consider the weak-link game with the feature of economies of scale that is necessary for voluntary group growth, in a minimal setup with exit and merger options that allows for bi-directional changes in...

We develop a game-theoretical model of European Union (EU) policy making which suggests that the amount of legislative activity depends on the size of the gridlock interval, consistent with Krehbiel's (1998) study of US politics. This interval depends on two factors: (1) the preference...

We study the choice of a principal to either delegate a decision to a group of careerist experts, or to consult them individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information aggregation. On the one hand, the expected benefit...

This paper will analyze the influence that discussion has on the performance of two-player teams in an experimental beauty contest game. Teams were allowed to communicate via electronic chat. The findings suggest that teams are not more rational than individuals in terms of reasoning. However,...