Communication, cooperation and collusion in team tournaments - An experimental study
AbstractWe study the effects of communication in an experimental tournament between teams. When teams, rather than individuals, compete for a prize there is a need for intra-team coordination in order to win the inter-team competition. Introducing communication in such situations may have ambiguous effects on effort choices. Communication within teams may promote higher efforts by mitigating the internal free-rider problem. Communication between competing teams may lead to collusion, thereby reducing efforts. In our experiment we control the channels of communication by letting subjects communicate through an electronic chat. We find, indeed, that communication within teams increases efforts and communication between teams reduces efforts. We use team members’ dialogues to explain these effects of communication, and check the robustness of our results.
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Bibliographic InfoPaper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 2016.
Date of creation: Aug 2007
Date of revision:
Tournament; Team decision making; Communication; Collusion; Free-riding; Experiment;
Other versions of this item:
- Sutter, Matthias & Strassmair, Christina, 2009. "Communication, cooperation and collusion in team tournaments--An experimental study," Games and Economic Behavior, Elsevier, vol. 66(1), pages 506-525, May.
- Matthias Sutter & Christina Strassmair, 2007. "Communication, cooperation and collusion in team tournaments ? An experimental study," Working Papers 2007-19, Faculty of Economics and Statistics, University of Innsbruck.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
- NEP-CBE-2007-09-02 (Cognitive & Behavioural Economics)
- NEP-COM-2007-09-02 (Industrial Competition)
- NEP-EXP-2007-09-02 (Experimental Economics)
- NEP-SPO-2007-09-02 (Sports & Economics)
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