TY - RPRT AU - Bjedov, TjaĊĦa AU - Lapointe, Simon AU - Madies, Thierry AU - Villeval, Marie Claire TI - Does Decentralization of Decisions Increase the Stability of Large Groups? PY - 2018/Feb/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 11364 UR - https://www.iza.org/publications/dp11364 AB - Using a laboratory experiment with nested local and global public goods, we analyze the stability of global groups when individuals have the option to separate, according to the degree of decentralization of decision-making. We show that increasing the number of decisions made at the local level within a smaller group reduces the likelihood that individuals vote in favor of a break-up of the global group. Voting for a break-up of the global group is more likely when global group members are less cooperative and local group members are more cooperative. Reinforcing local group identity has no impact on votes. KW - break-up of groups KW - decision rights KW - voting behavior KW - public goods KW - experiment ER -