The effect of sharing rules on group competition
AbstractWe consider embedding independent within-group conflicts for the provision of public goods in a between-group competition for an exogenously determined prize as a structural mechanism for reducing free riding. We model this situation by a multi-level collective action game in which the group s probability of wining the prize is proportional to its contribution, and the profit sharing rule that determines how to divide the prize among members of the winning group is either egalitarian or proportional to the individual contributions. Under appropriate parameterization of the payoff structure, zero contribution by individual members is no longer the equilibrium solution, and equilibrium contributions are substantially higher when the profit sharing rule is proportional rather than egalitarian. Our experimental results support the equilibrium predictions. A simple reinforcement- learning model accounts for the dynamics of play on the aggregate but not individual level.
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 EconWPA in its series Experimental with number 0307003.
Length: 345 pages
Date of creation: 28 Jul 2003
Date of revision:
Note: Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; pages: 345,395,4323247 ; figures: included/request from author/draw your own
Contact details of provider:
Web page: http://220.127.116.11
group competition public good;
Find related papers by JEL classification:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
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.:
- Sarin, R. & Vahid, F., 1999.
"Predicting how People Play Games: a Simple Dynamic Model of Choice,"
Monash Econometrics and Business Statistics Working Papers
12/99, Monash University, Department of Econometrics and Business Statistics.
- Sarin, Rajiv & Vahid, Farshid, 2001. "Predicting How People Play Games: A Simple Dynamic Model of Choice," Games and Economic Behavior, Elsevier, vol. 34(1), pages 104-122, January.
- Drew Fudenberg & David K. Levine, 1998.
"Learning in Games,"
Levine's Working Paper Archive
2222, David K. Levine.
- Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
- Baik, Kyung Hwan & Shogren, Jason F, 1995. " Competitive-Share Group Formation in Rent-Seeking Contests," Public Choice, Springer, vol. 83(1-2), pages 113-26, April.
- Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
- repec:att:wimass:9309 is not listed on IDEAS
- Jordan, J. S., 1991. "Bayesian learning in normal form games," Games and Economic Behavior, Elsevier, vol. 3(1), pages 60-81, February.
- Lee, Sanghack, 1995. " Endogenous Sharing Rules in Collective-Group Rent-Seeking," Public Choice, Springer, vol. 85(1-2), pages 31-44, October.
- Cox, James C. & Shachat, Jason & Walker, Mark, 2001. "An Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play," Games and Economic Behavior, Elsevier, vol. 34(1), pages 11-33, January.
- Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, vol. 87(5), pages 829-46, December.
- R. Isaac & James Walker, 1998. "Nash as an Organizing Principle in the Voluntary Provision of Public Goods: Experimental Evidence," Experimental Economics, Springer, vol. 1(3), pages 191-206, December.
- Rapoport, Amnon & Seale, Darryl A. & Winter, Eyal, 2002. "Coordination and Learning Behavior in Large Groups with Asymmetric Players," Games and Economic Behavior, Elsevier, vol. 39(1), pages 111-136, April.
- Selten, Reinhard, 1994. "Descriptive Approaches to Cooperation," Discussion Paper Serie B 292, University of Bonn, Germany.
- 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.
- Nalbantian, Haig & Schotter, Andrew, 1994. "Productivity Under Group Incentives: An Experimental Study," Working Papers 94-04, C.V. Starr Center for Applied Economics, New York University.
- Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
- Dale O. Stahl, 1999. "Evidence based rules and learning in symmetric normal-form games," International Journal of Game Theory, Springer, vol. 28(1), pages 111-130.
- Andreoni, James, 1995.
"Cooperation in Public-Goods Experiments: Kindness or Confusion?,"
American Economic Review,
American Economic Association, vol. 85(4), pages 891-904, September.
- Nitzan, Shmuel, 1991. "Collective Rent Dissipation," Economic Journal, Royal Economic Society, vol. 101(409), pages 1522-34, November.
- Hausken, Kjell, 1995. "The dynamics of within-group and between-group interaction," Journal of Mathematical Economics, Elsevier, vol. 24(7), pages 655-687.
- Bornstein, Gary & Winter, Eyal & Goren, Harel, 1996. "Experimental study of repeated team-games," European Journal of Political Economy, Elsevier, vol. 12(4), pages 629-639, December.
- Laury, Susan K. & Holt, Charles A., 2008. "Voluntary Provision of Public Goods: Experimental Results with Interior Nash Equilibria," Handbook of Experimental Economics Results, Elsevier.
- Eyal Winter & Amnon Rapoport & Darryl A. Seale, 2000. "An experimental study of coordination and learning in iterated two-market entry games," Economic Theory, Springer, vol. 16(3), pages 661-687.
- Nick Feltovich, 2000. "Reinforcement-Based vs. Belief-Based Learning Models in Experimental Asymmetric-Information," Econometrica, Econometric Society, vol. 68(3), pages 605-642, May.
- Katz, Eliakim & Nitzan, Shmuel & Rosenberg, Jacob, 1990. " Rent-Seeking for Pure Public Goods," Public Choice, Springer, vol. 65(1), pages 49-60, April.
- Andereoni, J., 1988. "Why Free Ride? Strategies And Learning In Public Goods Experiments," Working papers 375, Wisconsin Madison - Social Systems.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.