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Not all group members are created equal: heterogeneous abilities in inter-group contests

Author

Listed:
  • Francesco Fallucchi

    (Luxembourg Institute of Socio-Economic Research, LISER)

  • Enrique Fatas

    (Loughborough University
    Universidad ICESI
    University of Pennsylvania)

  • Felix Kölle

    (University of Cologne)

  • Ori Weisel

    (Tel Aviv University)

Abstract

Competition between groups is ubiquitous in social and economic life, and typically occurs between groups that are not created equal. Here we experimentally investigate the implications of this general observation on the unfolding of symmetric and asymmetric competition between groups that are either homogeneous or heterogeneous in the ability of their members to contribute to the success of the group. Our main finding is that relative to the benchmark case in which two homogeneous compete against each other, heterogeneity within groups per se has no discernable effect on competition, while introducing heterogeneity between groups leads to a significant intensification of conflict as well as increased volatility, thereby reducing earnings of contest participants and increasing inequality. We further find that heterogeneous groups share the labor much more equally than predicted by theory, and that in asymmetric contests group members change the way in which they condition their efforts on those of their peers. Implications for contest designers are discussed.

Suggested Citation

  • Francesco Fallucchi & Enrique Fatas & Felix Kölle & Ori Weisel, 2021. "Not all group members are created equal: heterogeneous abilities in inter-group contests," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 669-697, June.
  • Handle: RePEc:kap:expeco:v:24:y:2021:i:2:d:10.1007_s10683-020-09677-5
    DOI: 10.1007/s10683-020-09677-5
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    Cited by:

    1. Changxia Ke & Florian Morath & Sophia Seelos, 2023. "Do groups fight more? Experimental evidence on conflict initiation," Working Papers 2023-16, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Kölle, Felix, 2022. "Governance and competition," European Economic Review, Elsevier, vol. 148(C).
    3. Eckel, Catherine C. & Fatas, Enrique & Kass, Malcolm, 2022. "Sacrifice: An experiment on the political economy of extreme intergroup punishment," Journal of Economic Psychology, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Contests; Groups; Abilities; Heterogeneity; Experiments;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H4 - Public Economics - - Publicly Provided Goods

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