This paper presents a laboratory experiment to investigate how social motivations and free-form communication (Rich Communication) can facilitate coordinated resistance against divide-and-conquer transgressions. In our experiment, a leader first decides whether to extract surplus from a victim...

This paper reports the results from a laboratory microfinance experiment of group lending in the presence of moral hazard and (costly) peer monitoring. We compare peer monitoring treatments in which credit is provided to members of the group to individual lending treatments with lender...