Groups discipline resource use under scarcity

Abstract Scarcity sharpens the conflict between short term gains and long sustainability. Psychological research documents that decision makers focus on immediate needs under scarcity use available resources more effectively. However, also borrow too much from future overall performance decreases as a consequence. Using an online experiment, we study how affects borrowing decisions in groups. We first document groups similar way individuals. Then, go to show negative effect of is weaker for than Even minimal design excludes direct interaction or communication, fact participants know their own behavior can be partly observed by another participant disciplines scarce resources. Our results thus highlight benefit units human organization.