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Cooperation in Partnerships: The Role of Breakups and Reputation

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We investigate experimentally if endogenous partnership formation improves efficiency in social dilemmas. Subjects play multiple two-player public-goods games, where they can break up with their partner periodically. A stable-marriage mechanism based on rankings provided by singles determines the new matches. We vary the information subjects have on possible matches and whether staying in a partnership leads to a cost or a bonus. We find that endogenous group formation can increase efficiency. Both the provision of contribution history and bonuses have positive effects. At least one of these factors is required for efficiency improvements. The presence of both leads to the best results.
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Document Type: Research Article

Publication date: 01 December 2016

This article was made available online on 19 May 2016 as a Fast Track article with title: "Cooperation in Partnerships: The Role of Breakups and Reputation".

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  • Founded as Zeitschrift für die gesamte Staatswissenschaft in 1844.

    As one of the oldest journals in the field of political economy, the Journal of Institutional and Theoretical Economics (JITE) deals traditionally with the problems of economics, social policy, and their legal framework. JITE is listed in the Journal of Economic Literature, the Social Science Citation Index, the International Bibliography of the Social Sciences, and COREJ.

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    From 2013 on all accepted articles are published in an Online First version (in their final layout) to make them searchable and citable by their DOI immediately after peer review and acceptance. Once the article is published in an issue of the journal, the Online First version will be removed.

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