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Inter-team contests with power differential

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  • Bhattacharya, Puja

Abstract

We investigate the impact of asymmetry on behavior in inter-team contests. In asymmetric environments, one team has a greater probability of winning given the same contribution level (unfair contests) or has a lower cost of contributing (uneven contests). We explore how such asymmetries impact behavior, asking how being advantaged or disadvantaged influences contributions. We find both advantaged and disadvantaged teams contribute much more than theory predicts, but in such a way that ex-post winning probabilities of the contests are consistent with theoretical predictions. At the individual level, contributions are predicted by beliefs about own team and opponent team contributions. The determinants of contribution by members of the disadvantaged team differ depending on the nature of asymmetry. Contributions by the disadvantaged team members are responsive to beliefs about contribution by opponents in unfair contests while in uneven contests they are responsive to beliefs about the contribution by teammates.

Suggested Citation

  • Bhattacharya, Puja, 2016. "Inter-team contests with power differential," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 157-175.
  • Handle: RePEc:eee:jeborg:v:132:y:2016:i:pa:p:157-175
    DOI: 10.1016/j.jebo.2016.09.004
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    Cited by:

    1. FALLUCCHI Francesco & RAMALINGAM Abhijit, 2017. "Inequality and Competitive Effort: The Roles of Asymmetric Resources, Opportunity and Outcomes," LISER Working Paper Series 2017-12, LISER.

    More about this item

    Keywords

    Contests; Asymmetry; Inter-group competition; Discrimination;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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