Some research in social psychology has examined the effect of social influence on group processes. To examine the conditions under which individuals cooperate to function as a group and the effects of this group formation on the cohesiveness, communication, and morale of group members, two experiments were conducted. A group of three male subjects and a group of three female subjects lived for 10 consecutive days in programmed laboratory environments. The subjects could earn money by performing tasks and could put the earnings in an individual or group account, with incentives provided for shifting to the group account. Results showed that complete shifts to cooperative group effort occurred under some bonus conditions, accompanied by increased socialization, communication, and morale. Females were more accepting of distributing rewards according to an equality theory, while males strongly preferred equitable distribution of rewards. The findings suggest a new methodological approach to the study of groups. (JAC)