@TechReport{iza:izadps:dp10824, author={Gächter, Simon and Starmer, Chris and Tufano, Fabio}, title={Revealing the Economic Consequences of Group Cohesion}, year={2017}, month={Jun}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={10824}, url={https://www.iza.org/publications/dp10824}, abstract={We introduce the concept of "group cohesion" to capture the economic consequences of ubiquitous social relationships in group production. We measure group cohesion, adapting the "oneness scale" from psychology. A comprehensive program of new experiments reveals the considerable economic impact of cohesion: higher cohesion groups are significantly more likely to achieve Pareto-superior outcomes in classic weak-link coordination games. We show that effects of cohesion are economically large, robust, and portable. We identify social preferences as a primary mechanism explaining the effects of cohesion. Our results provide proof of concept for group cohesion as a productive new tool of economic research.}, keywords={weak-link game;coordination;oneness;group cohesion;social relationships;experiments;real groups}, }