The Value of Groups
Shaun P. Hargreaves Heap and Daniel John Zizzo
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| Article Citation |
Hargreaves Heap, Shaun P., and Daniel John Zizzo. 2009. "The Value of Groups." American Economic Review, 99(1): 295–323.
DOI:10.1257/aer.99.1.295
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| Abstract |
We present the results of an experiment that attempts to measure the social
value of groups. In the experiment, group membership is induced artificially:
subjects interact with insiders and outsiders in trust games and periodically
enter markets where they can trade group membership. We find that trust falls
with groups because of negative discrimination against outsiders. Against this,
however, there is evidence that group membership provides a psychological
benefit, albeit one that may induce social inertia. Overall, the welfare effects of
groups are at best neutral and could be negative. (JEL: D17, Z13)
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| Authors |
Hargreaves Heap, Shaun P. (U East Anglia)
Zizzo, Daniel John (U East Anglia)
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| JEL Classifications |
D71: Social Choice; Clubs; Committees; Associations
Z13: Economic Sociology; Economic Anthropology
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