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Everyone is a winner: Promoting cooperation through all-can-win intergroup competition

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  • Reuben, Ernesto
  • Tyran, Jean-Robert

Abstract

We test if cooperation is promoted by rank-order competition between groups in which all groups can be ranked first, i.e. when everyone can be a winner. This type of rank-order competition has the advantage that it can eliminate the negative externality a group's performance imposes on other groups. However, it has the disadvantage that incentives to outperform others are absent, and therefore it does not eliminate equilibria where all groups cooperate at an equal but low level. We find that all-can-win competition produces a universal increase in cooperation and benefits a majority of individuals if the incentive to compete is sharp.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 26 (2010)
Issue (Month): 1 (March)
Pages: 25-35

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Handle: RePEc:eee:poleco:v:26:y:2010:i:1:p:25-35
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

Keywords: Intergroup competition Cooperation Public goods Experiment;

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Find related papers by JEL classification:
  • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
  • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
  • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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Cited by:

  1. Heinrich Ursprung, 2012. "The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation," Public Choice, Springer, vol. 153(1), pages 149-161, October.
  2. Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2009. "Voting on Thresholds for Public Goods: Experimental Evidence," Discussion Papers 09-27, University of Copenhagen. Department of Economics.
  3. Gil S. Epstein & Yosef Mealem, 2011. "Cooperation and Effort in Group Contests," Working Papers 2011-28, Bar-Ilan University, Department of Economics.
  4. Johannes Weisser, 2011. "Leading by example in intergroup competition: An experimental approach," Jena Economic Research Papers 2011-067, Friedrich-Schiller-University Jena.
  5. Markussen, Thomas & Reuben, Ernesto & Tyran, Jean-Robert, 2012. "Competition, Cooperation, and Collective Choice," CEPR Discussion Papers 9099, C.E.P.R. Discussion Papers.
  6. Toke Reinholt Fosgaard & Marco Piovesan, 2015. "Nudge for (the Public) Good: How Defaults can affect Cooperation," IFRO Working Paper 2015/11, University of Copenhagen, Department of Food and Resource Economics.
  7. Lei, Vivian & Masclet, David & Vesely, Filip, 2014. "Competition vs. communication: An experimental study on restoring trust," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 94-107.
  8. Guillén, Pablo & Merrett, Danielle & Slonim, Robert, 2013. "A new solution for the moral hazard problem in team production," Working Papers 2013-19, University of Sydney, School of Economics.
  9. Sheremeta, Roman, 2015. "Behavior in Group Contests: A Review of Experimental Research," MPRA Paper 67515, University Library of Munich, Germany.
  10. Keisuke Hattori, 2015. "Within-group cooperation and between-group externalities in the provision of public goods," International Tax and Public Finance, Springer, vol. 22(2), pages 252-273, April.
  11. Kato, Takao & Shu, Pian, 2011. "Competition, Group Identity, and Social Networks in the Workplace: Evidence from a Chinese Textile Firm," IZA Discussion Papers 6219, Institute for the Study of Labor (IZA).
  12. Hattori, Keisuke, 2011. "A Note on Within-group Cooperation and Between-group Interaction in the Private Provision of Public Goods," MPRA Paper 32045, University Library of Munich, Germany.

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