Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159883
Authors: 
Bigoni, Maria
Camera, Gabriele
Casari, Marco
Year of Publication: 
2015
Series/Report no.: 
Quaderni - Working Paper DSE 1045
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.
JEL: 
C70
C90
D80
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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