ENDOGENOUS GROUP FORMATION AND MONITORING
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Autori:
• Hu ZHANG, Afiliation: The Central University of Finance and Economics, China
• Weiying ZHANG, email: jameshall@163.com, Afiliation: Peking University, China -
Keywords: Grouping structure, Peer Monitoring, Intermediary, Information, Repeated Game
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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.