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Everyone is a Winner: Promoting Cooperation through All-Can-Win Intergroup Competition

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  • Reuben, Ernesto

    ()
    (Columbia University)

  • Tyran, Jean-Robert

    ()
    (University of Copenhagen)

Abstract

We 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 if groups perform at the same level and it therefore does not eliminate low-cooperation equilibria. We find that all-can-win competition produces a universal increase in cooperation and benefits a majority of individuals if incentives to compete are strong.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4112.

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Length: 29 pages
Date of creation: Apr 2009
Date of revision:
Publication status: published in: European Journal of Political Economy, 2010, 26 (1), 25-35
Handle: RePEc:iza:izadps:dp4112

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Keywords: public goods; cooperation; intergroup competition; experiment;

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References

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Citations

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Cited by:
  1. Markussen, Thomas & Reuben, Ernesto & Tyran, Jean-Robert, 2012. "Competition, Cooperation, and Collective Choice," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9099, C.E.P.R. Discussion Papers.
  2. Johannes Weisser, 2011. "Leading by example in intergroup competition: An experimental approach," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2011-067, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2010. "Voting on Thresholds for Public Goods: Experimental Evidence," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 66(1), pages 34-64, March.
  4. Heinrich Ursprung, 2011. "The Evolution of Sharing Rules in Rent Seeking Contests: Incentives Crowd Out Cooperation," Working Paper Series of the Department of Economics, University of Konstanz, Department of Economics, University of Konstanz 2011-02, Department of Economics, University of Konstanz.
  5. Guillen, Pablo & Merrett, Danielle & Slonim, Robert, 2013. "A new solution for the moral hazard problem in team production," Working Papers, University of Sydney, School of Economics 2013-19, University of Sydney, School of Economics.
  6. Gil S. Epstein & Yosef Mealem, 2011. "Cooperation and Effort in Group Contests," Working Papers, Bar-Ilan University, Department of Economics 2011-28, Bar-Ilan University, Department of Economics.
  7. Kato, Takao & Shu, Pian, 2011. "Competition, Group Identity, and Social Networks in the Workplace: Evidence from a Chinese Textile Firm," IZA Discussion Papers 6219, Institute for the Study of Labor (IZA).
  8. Hattori, Keisuke, 2011. "A Note on Within-group Cooperation and Between-group Interaction in the Private Provision of Public Goods," MPRA Paper 32045, University Library of Munich, Germany.

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