Maintaining Efficiency While Integrating Entrants from Lower Performing Groups: An Experimental Study

28 Pages Posted: 1 Mar 2017

See all articles by Timothy C. Salmon

Timothy C. Salmon

Southern Methodist University (SMU)

Roberto A. Weber

University of Zurich - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 2017

Abstract

Efficiently growing a group often requires integrating individuals from lower performing entities. We explore the effectiveness of policies intended to facilitate such integration, using an experiment that models production as a coordination game. We create an efficient group and an inefficient one. We then allow individuals to move into the efficient group under different mechanisms. We investigate the use of an entry quota, an entry quiz and combinations of the two in order to try to understand if and why the institutions are effective. We find that both restrictions work to maintain efficient coordination but they are effective for different reasons.

Suggested Citation

Salmon, Timothy C. and Weber, Roberto A., Maintaining Efficiency While Integrating Entrants from Lower Performing Groups: An Experimental Study (March 2017). The Economic Journal, Vol. 127, Issue 600, pp. 417-444, 2017, Available at SSRN: https://ssrn.com/abstract=2924902 or http://dx.doi.org/10.1111/ecoj.12308

Timothy C. Salmon (Contact Author)

Southern Methodist University (SMU)

6212 Bishop Blvd.
Dallas, TX 75275
United States

Roberto A. Weber

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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