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Competition lessens competition

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  • Godoy, Sara
  • Morales, Antonio J.
  • Rodero, Javier
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    Abstract

    We experimentally analyse simultaneous behaviour in a contest game and a public good game, whose endowment is shared. Competition for resources (i) almost eliminates overbidding, without affecting public good contributions and (ii) almost eliminates the behavioural spillovers between the games.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176513002589
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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 120 (2013)
    Issue (Month): 3 ()
    Pages: 419-423

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    Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:419-423

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Experiment; Competition; Public good game; Contest game; Behavioural spillovers;

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    1. Nalbantian, Haig R & Schotter, Andrew, 1997. "Productivity under Group Incentives: An Experimental Study," American Economic Review, American Economic Association, vol. 87(3), pages 314-41, June.
    2. Anya Savikhin & Roman M. Sheremeta, 2010. "Simultaneous Decision-Making in Competitive and Cooperative Environments," Working Papers 10-09, Chapman University, Economic Science Institute.
    3. Cason, Timothy N. & Savikhin, Anya C. & Sheremeta, Roman M., 2012. "Behavioral spillovers in coordination games," European Economic Review, Elsevier, vol. 56(2), pages 233-245.
    4. Huck, Steffen & Jehiel, Philippe & Rutter, Tom, 2011. "Feedback spillover and analogy-based expectations: A multi-game experiment," Games and Economic Behavior, Elsevier, vol. 71(2), pages 351-365, March.
    5. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
    6. Armin Falk & Urs Fischbacher & Simon Gächter, 2013. "Living In Two Neighborhoods—Social Interaction Effects In The Laboratory," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 563-578, 01.
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