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Who makes the pie bigger? An experimental study on co-opetition

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Author Info

  • Juan Lacomba
  • Francisco Lagos
  • Tibor Neugebauer

Abstract

The 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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File URL: http://www.tandfonline.com/doi/abs/10.1080/00779954.2011.556070
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.

Volume (Year): 45 (2011)
Issue (Month): 1-2 ()
Pages: 59-68

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Handle: RePEc:taf:nzecpp:v:45:y:2011:i:1-2:p:59-68

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Web page: http://www.tandfonline.com/RNZP20

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Related research

Keywords: competition; cooperation; co-opetition; ambiguously repeated prisoner's dilemma; experimental economics;

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