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Sorting and communication in weak-link group contests

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  • Brookins, Philip
  • Lightle, John P.
  • Ryvkin, Dmitry

Abstract

We experimentally study the effects of sorting and communication in contests between groups of heterogeneous players whose within-group efforts are perfect complements. Contrary to the common wisdom that competitive balance bolsters performance in contests, in this setting theory predicts that aggregate output increases in the variation in abilities between groups, i.e., it is maximized by the most unbalanced sorting of players. However, the data does not support this prediction. In the absence of communication, we find no effect of sorting on aggregate output, while in the presence of within-group communication aggregate output is 33% higher under the balanced sorting as compared to the unbalanced sorting. This reversal of the prediction is in line with the competitive balance heuristic. The results have implications for the design of optimal groups in organizations using relative performance pay.

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  • Brookins, Philip & Lightle, John P. & Ryvkin, Dmitry, 2018. "Sorting and communication in weak-link group contests," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 64-80.
    • Handle: RePEc:eee:jeborg:v:152:y:2018:i:c:p:64-80
    DOI: 10.1016/j.jebo.2018.05.010
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    Cited by:

    1. Mantilla, Cesar & Murad, Zahra, 2020. "Ego-relevance in team production," SocArXiv zy248, Center for Open Science.
    2. Mürüvvet Büyükboyaci & Andrea Robbett, 2019. "Team formation with complementary skills," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(4), pages 713-733, November.
    3. Sheremeta, Roman, 2018. "Experimental Research on Contests," MPRA Paper 89327, University Library of Munich, Germany.
    4. Kwiek, Maksymilian & Marreiros, Helia & Vlassopoulos, Michael, 2019. "Voting as a war of attrition," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 104-121.
    5. Dechenaux, Emmanuel & Mago, Shakun D., 2019. "Communication and side payments in a duopoly with private costs: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 157-184.
    6. Song, Jian & Houser, Daniel, 2021. "Non-exclusive group contests: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 87(C).
    7. Roman M. Sheremeta, 2018. "Behavior In Group Contests: A Review Of Experimental Research," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 683-704, July.
    8. Huang, Lingbo & Murad, Zahra, 2021. "Fighting alone versus fighting for a team: An experiment on multiple pairwise contests," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 616-631.
    9. Brookins, Philip & Jindapon, Paan, 2021. "Risk preference heterogeneity in group contests," Journal of Mathematical Economics, Elsevier, vol. 95(C).

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