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Everyone Is A Winner: Promoting Cooperation Through Non-Rival Intergroup Competition

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Author Info
Ernesto Reuben (Northwestern University)
Jean-Robert Tyran (Department of Economics, University of Copenhagen)

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Abstract

In this paper, we study the effectiveness of intergroup competition in promoting cooperative behavior. We focus on intergroup competition that is non-rival in the sense that everyone can be a winner. This type of competition does not give groups an incentive to outcompete others. However, in spite of this fact, we find that intergroup competition produces a universal increase in cooperation. Furthermore, in settings where there are strong incentives to compete, intergroup competition benefits a majority of individuals.

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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 08-26.

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Length: 15 pages
Date of creation: Aug 2008
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Handle: RePEc:kud:kuiedp:0826

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

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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  4. 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)
    Other versions:
  5. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Blackwell Publishing, vol. 15(5), pages 589-611, December. [Downloadable!] (restricted)
  6. Josef Falkinger & Ernst Fehr & Simon Gaechter, . "A Simple Mechanism for the Efficient Provision of Public Goods - Experimental Evidence," IEW - Working Papers iewwp003, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  7. 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:
  8. Gary Bornstein, 2002. "Intergroup conflict: Individual, group and collective interests," Discussion Paper Series dp297, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem. [Downloadable!]
  9. 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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