摘要:To secure their membership in a popular group, individuals may contribute more to the
group’s local public good than they would if group formation were exogenous. Those in the
most unpopular group do not have this incentive to contribute to their group. Substantial
differences in individual efforts levels between groups may be the result. A principal
may prefer either exogenous or endogenous group formation, depending on whether an
increase in contributions to the local public good coincides with the principal’s interests.
We analyze two examples: Social interaction in schools, and multiple-task teamwork.
关键词:Local public goods, opportunity costs, popularity, multiple-task principalagent
analysis.