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

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Author Info
Reuben, Ernesto () (Columbia University)
Tyran, Jean-Robert () (University of Copenhagen)

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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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Publisher 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
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Handle: RePEc:iza:izadps:dp4112

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

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Find related papers by JEL classification:
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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  2. Nalbantian, Haig R & Schotter, Andrew, 1997. "Productivity under Group Incentives: An Experimental Study," American Economic Review, American Economic Association, vol. 87(3), pages 314-41, June. [Downloadable!] (restricted)
    Other versions:
  3. Riechmann, Thomas & Weimann, Joachim, 2008. "Competition as a coordination device: Experimental evidence from a minimum effort coordination game," European Journal of Political Economy, Elsevier, vol. 24(2), pages 437-454, June. [Downloadable!] (restricted)
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  4. M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2005. "Leading by example in a public goods experiment with heterogeneity and incomplete information," Papers on Strategic Interaction 2005-17, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  5. Marwell, Gerald & Ames, Ruth E., 1981. "Economists free ride, does anyone else? : Experiments on the provision of public goods, IV," Journal of Public Economics, Elsevier, vol. 15(3), pages 295-310, June. [Downloadable!] (restricted)
  6. Knoeber, Charles R & Thurman, Walter N, 1994. "Testing the Theory of Tournaments: An Empirical Analysis of Broiler Production," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 155-79, April. [Downloadable!] (restricted)
  7. Sausgruber, Rupert & Tyran, Jean-Robert, 2007. "Pure redistribution and the provision of public goods," Economics Letters, Elsevier, vol. 95(3), pages 334-338, June. [Downloadable!] (restricted)
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  8. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Blackwell Publishing, vol. 15(5), pages 589-611, December. [Downloadable!] (restricted)
  9. Dirk Engelmann & Martin Strobel, 2006. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments: Reply," American Economic Review, American Economic Association, vol. 96(5), pages 1918-1923, December. [Downloadable!]
  10. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June. [Downloadable!] (restricted)
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