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Within-Team Competition in the Minimum Effort Coordination Game

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Author Info

  • Enrique Fatas

    (University Valencia)

  • Tibor Neugebauer

    (University Hannover)

  • Javier Perote

    (Juan Carlos University Madrid)

Abstract

We report the results of an experiment on a continuous version of the minimum effort coordination game. The introduction of within-team competition significantly increases effort levels relative to a baseline with no competition and increases coordination relative to a secure treatment where the payoff-dominant equilibrium strategy weakly dominates all other actions. Nonetheless, within-team competition does not prevent subjects to polarize both in the efficient and the inefficient equilibria.

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File URL: http://128.118.178.162/eps/exp/papers/0503/0503006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Experimental with number 0503006.

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Length: 28 pages
Date of creation: 25 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpex:0503006

Note: Type of Document - pdf; pages: 28
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Web page: http://128.118.178.162

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Keywords: Coordination Games; Team Incentives; Minimum Effort Game;

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  1. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  2. 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.
  3. Andereoni, J., 1988. "Why Free Ride? Strategies And Learning In Public Goods Experiments," Working papers 375, Wisconsin Madison - Social Systems.
  4. Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 351-66, April.
  5. Rankin, Frederick W. & Van Huyck, John B. & Battalio, Raymond C., 2000. "Strategic Similarity and Emergent Conventions: Evidence from Similar Stag Hunt Games," Games and Economic Behavior, Elsevier, vol. 32(2), pages 315-337, August.
  6. Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
  7. Berninghaus, Siegfried K. & Ehrhart, Karl-Martin, 1998. "Time horizon and equilibrium selection in tacit coordination games: Experimental results," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 231-248, October.
  8. 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.
  9. Anderson, Simon P. & Goeree, Jacob K. & Holt, Charles A., 2001. "Minimum-Effort Coordination Games: Stochastic Potential and Logit Equilibrium," Games and Economic Behavior, Elsevier, vol. 34(2), pages 177-199, February.
  10. Camerer, Colin F. & Knez, Marc & Weber, Roberto A., 1996. "Timing and Virtual Observability in Ultimatum Bargaining and Weak Link Coordination Games," Working Papers 970, California Institute of Technology, Division of the Humanities and Social Sciences.
  11. Timothy Cason & Daniel Friedman, 1999. "Learning in a Laboratory Market with Random Supply and Demand," Experimental Economics, Springer, vol. 2(1), pages 77-98, August.
  12. R. Isaac & David Schmidtz & James Walker, 1989. "The assurance problem in a laboratory market," Public Choice, Springer, vol. 62(3), pages 217-236, September.
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Cited by:
  1. Jordi Brandts & David J. Cooper & Enrique Fatas, 2006. "Leadership and Overcoming Coordination Failure with Asymmetric Costs," UFAE and IAE Working Papers 691.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Gunnthorsdottir, Anna & Vragov, Roumen & Seifert, Stefan & McCabe, Kevin, 2010. "Near-efficient equilibria in contribution-based competitive grouping," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 987-994, December.
  3. Fabrice Le Lec & Astrid Matthey & Ondrej Rydval, 2012. "Punishment Fosters Efficiency in the Minimum Effort Coordination Game," Jena Economic Research Papers 2012-030, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Rachel Croson & Enrique Fatas & Tibor Neugebauer, 2006. "An Experimental Analysis Of Conditional Cooperation," Working Papers. Serie AD 2006-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Gunnthorsdottir, Anna & Vragov, Roumen & seifert, Stefan & McCabe, Kevin, 2008. "on the efficiency of team-based meritocracies," MPRA Paper 8627, University Library of Munich, Germany.

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