Money and the Scale of Cooperation

Bigoni, Maria ; Camera, Gabriele ; Casari, Marco (2015) Money and the Scale of Cooperation. Bologna: Dipartimento di Scienze economiche DSE, p. 45. DOI 10.6092/unibo/amsacta/4426. In: Quaderni - Working Paper DSE (1045). ISSN 2282-6483.
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Abstract

This study reveals the existence of a causal link between the availability of money and an expanded scale of interaction. We constructed an experiment where participants chose the group size, either a low-value partnership or a high-value group of strangers, and then faced an intertemporal cooperative task. Theoretically, a monetary system was inessential to achieve cooperation. Empirically, without a working monetary system, participants were reluctant to expand the scale of interaction; and when they did, they ended up destroying surplus compared to partnerships, because cooperation collapsed in large groups. This economic failure was reversed only when participants managed to concurrently develop a stable monetary system.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Bigoni, Maria
Camera, Gabriele
Casari, Marco
Keywords
Endogenous institutions, experiments, repeated games, strategic uncertainty
Subjects
ISSN
2282-6483
DOI
Deposit date
07 Jan 2016 08:43
Last modified
07 Jun 2017 08:26
URI

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