Bulletin n. 1/2013
June 2013
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
    • Morita Hodaka, Servátka Maroš
    Group identity and relation-specific investment: An experimental investigation
    in European Economic Review , Volume 58, February 2013 ,  2013 ,  95-109
    The hold-up problem has played a central role in the study of firm boundaries, which is a fundamental element of the economic study of organizations. We study a previously unexplored mechanism by which integration between two parties could mitigate the problem. Based on the social identity theory, we conjecture that group identity strengthens agents’ altruistic preferences towards group members, and this helps mitigate the hold-up problem. We test this conjecture in a laboratory experiment. Our subjects were randomly divided into two teams and asked to wear their team uniform. Task 1 required them to answer questions about trivia, where the subjects had access to a chat program that enabled them to help their team members. For Task 2, the subjects played a hold-up game with either a member of their own team (representing integration) or a member of the other team (non-integration). The experimental results support our conjectures.
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