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Simultaneous Decision-Making in Competitive and Cooperative Environments

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  • Savikhin, Anya
  • Sheremeta, Roman

Abstract

We experimentally investigate simultaneous decision-making in two contrasting environments: one that encourages competition (lottery contest) and one that encourages cooperation (public good game). We find that simultaneous participation in the public good game affects behavior in the contest, decreasing sub-optimal overbidding. Contributions to the public good are not affected by participation in the contest. The direction of behavioral spillover is explained by differences in strategic uncertainty and path-dependence across games. Our design allows us to compare preferences for cooperation and competition. We find that in early periods, there is a negative correlation between decisions in competitive and in cooperative environments.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 46809.

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Date of creation: 05 Mar 2012
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Handle: RePEc:pra:mprapa:46809

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Keywords: cooperation; competition; public goods; contests; experiments; behavioral spillover;

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