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Published online by Cambridge University Press: 04 January 2016
Mutual aid societies represent intentional institutionalized cooperation. Groups of individuals pool their resources to provide risk protection and social benefits for themselves in what are usually inhospitable settings. Such organizations are clearly adaptive at the group level. However, their development and maintenance require considerable investment of time and financial resources that could be applied to more individualistic ends. What incentives encourage individuals to assume leadership responsibilities in such organizations? And by what means are free riders prevented from negating the organizations’ efforts by sinking the system?