The Breakdown and Recovery of Cooperation in Large Groups: Exploring the Role of Formal Structure Using a Field Experiment

Abstract

While crucial for the success of organizations, cooperation can unravel with size. We study a workplace safety methodology that leverages voluntary cooperation: workers are enrolled and trained to provide advice to co-workers on safe behavior. Using administrative data, we show that cooperation breaks down as the number of enrolled workers increase. Then, we experimentally manipulate the methodology by structuring workers around groups. This produces a recovery of cooperative effort and a reduction in risky behavior and accidents. We show that the likely mechanism are repeated interactions among advisor and workers, and not group dynamics such as identity or peer pressure.

Keywords: Cooperation, Field experiment, Repeated interactions, Identity, Reputation, Workplace safety

JEL Classification: M14, M21