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Inter-team contests with power differential

Listed author(s):
  • Bhattacharya, Puja
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    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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167268116301950
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    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 132 (2016)
    Issue (Month): PA ()
    Pages: 157-175

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    Handle: RePEc:eee:jeborg:v:132:y:2016:i:pa:p:157-175
    DOI: 10.1016/j.jebo.2016.09.004
    Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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