Everyone is a winner: Promoting cooperation through all-can-win intergroup competition
AbstractWe test if cooperation is promoted by rank-order competition between groups in which all groups can be ranked first, i.e. when everyone can be a winner. This type of rank-order competition has the advantage that it can eliminate the negative externality a group's performance imposes on other groups. However, it has the disadvantage that incentives to outperform others are absent, and therefore it does not eliminate equilibria where all groups cooperate at an equal but low level. We find that all-can-win competition produces a universal increase in cooperation and benefits a majority of individuals if the incentive to compete is sharp.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Political Economy.
Volume (Year): 26 (2010)
Issue (Month): 1 (March)
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Web page: http://www.elsevier.com/locate/inca/505544
Intergroup competition Cooperation Public goods Experiment;
Other versions of this item:
- Ernesto Reuben & Jean-Robert Tyran, 2008. "Everyone Is A Winner: Promoting Cooperation Through Non-Rival Intergroup Competition," Discussion Papers 08-26, University of Copenhagen. Department of Economics.
- Reuben, Ernesto & Tyran, Jean-Robert, 2009. "Everyone is a Winner: Promoting Cooperation through All-Can-Win Intergroup Competition," IZA Discussion Papers 4112, Institute for the Study of Labor (IZA).
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
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