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 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4112.
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
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Reuben, Ernesto & Tyran, Jean-Robert, 2010. "Everyone is a winner: Promoting cooperation through all-can-win intergroup competition," European Journal of Political Economy, Elsevier, vol. 26(1), pages 25-35, March.
- 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.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-18 (All new papers)
- NEP-CBE-2009-04-18 (Cognitive & Behavioural Economics)
- NEP-EXP-2009-04-18 (Experimental Economics)
- NEP-PBE-2009-04-18 (Public Economics)
- NEP-SOC-2009-04-18 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
- Rupert Sausgruber & Jean-Robert Tyran, 2006.
"Pure Redistribution and the Provision of Public Goods,"
06-24, University of Copenhagen. Department of Economics.
- Sausgruber, Rupert & Tyran, Jean-Robert, 2007. "Pure redistribution and the provision of public goods," Economics Letters, Elsevier, vol. 95(3), pages 334-338, June.
- 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.
- Thomas Riechmann & Joachim Weimann, 2004. "Competition as a Coordination Device. Experimental Evidence from a Minimum Effort Coordination Game," Game Theory and Information 0405011, EconWPA.
- J. Ledyard, 1997.
"Public Goods: A Survey of Experimental Research,"
Levine's Working Paper Archive
509, David K. Levine.
- Ledyard, John O., . "Public Goods: A Survey of Experimental Research," Working Papers 861, California Institute of Technology, Division of the Humanities and Social Sciences.
- John O. Ledyard, 1994. "Public Goods: A Survey of Experimental Research," Public Economics 9405003, EconWPA, revised 22 May 1994.
- Ernst Fehr & Michael Naef & Klaus M. Schmidt, 2006.
"Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments: Comment,"
American Economic Review,
American Economic Association, vol. 96(5), pages 1912-1917, December.
- Fehr, Ernst & Naef, Michael & Schmidt, Klaus M., 2006. "Inequality aversion, efficiency, and maximin preferences in simple distribution experiments: Comment," Munich Reprints in Economics 20639, University of Munich, Department of Economics.
- Gary Bornstein, 2002. "Intergroup conflict: Individual, group and collective interests," Discussion Paper Series dp297, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Bornstein, Gary & Gneezy, Uri & Nagel, Rosmarie, 2002.
"The effect of intergroup competition on group coordination: an experimental study,"
Games and Economic Behavior,
Elsevier, vol. 41(1), pages 1-25, October.
- Gary Bornstein & Uri Gneezy & Rosemarie Nagel, 1999. "The effect of intergroup competition on group coordination: An experimental study," Economics Working Papers 393, Department of Economics and Business, Universitat Pompeu Fabra.
- Josef Falkinger & Ernst Fehr & Simon Gaechter, .
"A Simple Mechanism for the Efficient Provision of Public Goods - Experimental Evidence,"
IEW - Working Papers
003, Institute for Empirical Research in Economics - University of Zurich.
- Josef Falkinger, 2000. "A Simple Mechanism for the Efficient Provision of Public Goods: Experimental Evidence," American Economic Review, American Economic Association, vol. 90(1), pages 247-264, March.
- M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2007.
"Leading by Example in a Public Goods Experiment with Heterogeneity and Incomplete Information,"
Journal of Conflict Resolution,
Peace Science Society (International), vol. 51(5), pages 793-818, October.
- 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.
- Tan, Jonathan H.W. & Bolle, Friedel, 2007. "Team competition and the public goods game," Economics Letters, Elsevier, vol. 96(1), pages 133-139, July.
- 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.
- Frans van Dijk & Joep Sonnemans & Frans van Winden, 1998.
"Incentive Systems in a Real Effort Experiment,"
Tinbergen Institute Discussion Papers
98-023/1, Tinbergen Institute.
- McKelvey Richard D. & Palfrey Thomas R., 1995. "Quantal Response Equilibria for Normal Form Games," Games and Economic Behavior, Elsevier, vol. 10(1), pages 6-38, July.
- Ernst Fehr & Bettina Rockenbach, 2003. "Detrimental effects of sanctions on human altruism," Microeconomics 0305007, EconWPA.
- Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
- Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
- 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.
- 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.
- R. McKelvey & T. Palfrey, 2010. "Quantal Response Equilibria for Normal Form Games," Levine's Working Paper Archive 510, David K. Levine.
- Anderson, Simon P. & Goeree, Jacob K. & Holt, Charles A., 1998. "A theoretical analysis of altruism and decision error in public goods games," Journal of Public Economics, Elsevier, vol. 70(2), pages 297-323, November.
- R. Isaac & James Walker & Susan Thomas, 1984. "Divergent evidence on free riding: An experimental examination of possible explanations," Public Choice, Springer, vol. 43(2), pages 113-149, January.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- 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.
- Guillen, Pablo & Merrett, Danielle & Slonim, Robert, 2013. "A new solution for the moral hazard problem in team production," Working Papers 2013-19, University of Sydney, School of Economics.
- 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.
- Markussen, Thomas & Reuben, Ernesto & Tyran, Jean-Robert, 2012.
"Competition, Cooperation, and Collective Choice,"
CEPR Discussion Papers
9099, C.E.P.R. Discussion Papers.
- Heinrich Ursprung, 2012.
"The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation,"
Springer, vol. 153(1), pages 149-161, October.
- 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 2011-02, Department of Economics, University of Konstanz.
- Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2009.
"Voting on Thresholds for Public Goods: Experimental Evidence,"
09-27, University of Copenhagen. Department of Economics.
- Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2010. "Voting on Thresholds for Public Goods: Experimental Evidence," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 34-64, March.
- Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2009. "Voting on Thresholds for Public Goods: Experimental Evidence," CESifo Working Paper Series 2896, CESifo Group Munich.
- Gil S. Epstein & Yosef Mealem, 2011.
"Cooperation and Effort in Group Contests,"
2011-28, Department of Economics, Bar-Ilan University.
- 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).
- Johannes Weisser, 2011. "Leading by example in intergroup competition: An experimental approach," Jena Economic Research Papers 2011-067, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.