How does the loot drop in multiplayer, per person or free for all?

In Torchlight 2, how does the loot drop in multiplayer games? Does it drop assigned to individual characters? Or is it just a first come first served kind of deal?

I ask because I play games with a few guys that are loot hoarders to the point that it almost ruins games (the old, "hey there is a chest over there, I am going to stop killing this monster and go get it while the monster slaughter you!")

The dropping of loot will really determine if this game becomes one I play solo, or we play as a group.

Solution 1:

Loot drops are per-person. I just played a LAN game for a few minutes and all the dropped equipment and gold was exclusive to me, unseeable and untouchable by other players in the session.