ENDOGENOUS GROUP FORMATION AND MONITORING
ENDOGENOUS GROUP FORMATION AND MONITORING
Author(s): Weiying Zhang, Hu ZhangSubject(s): Economy
Published by: Universitatea Nicolae Titulescu
Keywords: Grouping structure; Peer Monitoring; Intermediary; Information; Repeated Game
Summary/Abstract: This paper is an attempt to explore the determinants behind various group formations. We show that the group formation depends on the efficiency of information transmission. In our point of view, the optimal grouping structure should minimize the distortion induced by the informative imperfection so that it is easiest to sustain the cooperative equilibrium.
Journal: LESIJ - Lex ET Scientia International Journal
- Issue Year: XVI/2009
- Issue No: 2
- Page Range: 384-387
- Page Count: 4
- Language: English