Groups discipline resource use under scarcity [Dataset, Instructions, and Replication files]

Resource scarcity sharpens the conflict between short term gains and long term sustainability. Psychological research documents that decision makers focus on immediate needs under scarcity. While decision makers use available resources most effectively, they also borrow too much from future resources. Overall performance decreases as a consequence. Using an online experiment, we study how scarcity affects borrowing decisions in groups. We show that the negative effect of scarcity is weaker for groups than for individuals. Even in our minimal design that excludes direct interaction or communication, the fact that participants know that their own behavior affects another participant disciplines their use of scarce resources. Our results thus highlight the benefit of groups as units of human organization.