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Competition lessens competition

Author

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  • Godoy, Sara
  • Morales, Antonio J.
  • Rodero, Javier

Abstract

We experimentally analyse simultaneous behaviour in a contest game and a public good game, whose endowment is shared. Competition for resources (i) almost eliminates overbidding, without affecting public good contributions and (ii) almost eliminates the behavioural spillovers between the games.

Suggested Citation

  • Godoy, Sara & Morales, Antonio J. & Rodero, Javier, 2013. "Competition lessens competition," Economics Letters, Elsevier, vol. 120(3), pages 419-423.
    • Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:419-423
    DOI: 10.1016/j.econlet.2013.05.021
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    References listed on IDEAS

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    1. Cason, Timothy N. & Savikhin, Anya C. & Sheremeta, Roman M., 2012. "Behavioral spillovers in coordination games," European Economic Review, Elsevier, vol. 56(2), pages 233-245.
    2. Anya C. Savikhin & Roman M. Sheremeta, 2013. "Simultaneous Decision-Making In Competitive And Cooperative Environments," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1311-1323, April.
    3. Nalbantian, Haig R & Schotter, Andrew, 1997. "Productivity under Group Incentives: An Experimental Study," American Economic Review, American Economic Association, vol. 87(3), pages 314-341, June.
    4. Huck, Steffen & Jehiel, Philippe & Rutter, Tom, 2011. "Feedback spillover and analogy-based expectations: A multi-game experiment," Games and Economic Behavior, Elsevier, vol. 71(2), pages 351-365, March.
    5. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    6. Armin Falk & Urs Fischbacher & Simon Gächter, 2013. "Living In Two Neighborhoods—Social Interaction Effects In The Laboratory," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 563-578, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Florian Heine & Martin Sefton, 2018. "To Tender or Not to Tender? Deliberate and Exogenous Sunk Costs in a Public Good Game," Games, MDPI, vol. 9(3), pages 1-28, June.

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    More about this item

    Keywords

    Experiment; Competition; Public good game; Contest game; Behavioural spillovers;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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