Who makes the pie bigger? An experimental study on co-opetition
AbstractThe tension between cooperation and competition that characterizes many business relationships is experimentally studied in a 'pie'-creation game; value is created and increased through cooperation in a repeated prisoner's dilemma game. At the end, the player with the greater stake in the joint pie decides on the division of the pie. Three treatments of the pie-creation game are considered: in the first treatment, rivals create the pie; in the second, non-rivals create the pie; finally, in the third, the pie is created by subjects who do not know about the future pie-division. The data show that the competition for the right to split the pie biases behaviors towards defection when subjects play with their rival.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.
Volume (Year): 45 (2011)
Issue (Month): 1-2 ()
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Web page: http://www.tandfonline.com/RNZP20
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