Collective Induction without Cooperation? 1 Running head: COLLECTIVE INDUCTION WITHOUT COOPERATION? Collective Induction without Cooperation? Learning and Knowledge Transfer in Cooperative Groups and Competitive Auctions July 2006 Boris Maciejovsky David V. Budescu Boris Maciejovsky, Massachusetts Institute of Technology, Sloan School of Management; David V. Budescu, University of Illinois at Urbana-Champaign, Department of Psychology. We gratefully acknowledge valuable comments by three referees, the associate editor, Scott Tindale, as well as by Dan Ariely, Gila Budescu, Zoë Chance, Ely Dahan, Shane Frederick, Werner Güth, Denis Hilton, Erik Hölzl, Tatsuya Kameda, Patrick Laughlin, Daniel Mochon, and Rami Zwick. We are also indebted to Ben Greiner for his research assistance. Correspondence concerning this article should be addressed to Boris Maciejovsky, Massachusetts Institute of Technology, Sloan School of Management, 38 Memorial Drive, E56-345b, Cambridge, MA 02142, or to David V. Budescu, University of Illinois at Urbana- Champaign, Department of Psychology, 603 E. Daniel St., Champaign, IL 61820. Electronic mail may be sent to maciejov@mit.edu or dbudescu@uiuc.edu