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Cooperation and Effort in Group Contests

Author

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  • Gil S. Epstein

    () (Bar-Ilan University)

  • Yosef Mealem

Abstract

We consider a two group contest over a group specific public good comparing two situations: (i) when all players act independently; and (ii) when the players of each group cooperate. This comparison leads us to the conclusion that it is possible for one group to contribute more (and have a higher expected payoff) in the non-cooperative regime than in the cooperative regime.

Suggested Citation

  • Gil S. Epstein & Yosef Mealem, 2011. "Cooperation and Effort in Group Contests," Working Papers 2011-28, Bar-Ilan University, Department of Economics.
  • Handle: RePEc:biu:wpaper:2011-28
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    File URL: http://econ.biu.ac.il/files/economics/working-papers/2011-28.pdf
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    References listed on IDEAS

    as
    1. Riaz, Khalid & Shogren, Jason F & Johnson, Stanley R, 1995. "A General Model of Rent Seeking for Public Goods," Public Choice, Springer, vol. 82(3-4), pages 243-259, March.
    2. Cheikbossian, Guillaume, 2008. "Rent-seeking, spillovers and the benefits of decentralization," Journal of Urban Economics, Elsevier, vol. 63(1), pages 217-228, January.
    3. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
    4. Gil S. Epstein & Shmuel Nitzan, 2003. "Political culture and monopoly price determination," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 21(1), pages 1-19, August.
    5. Reuben, Ernesto & Tyran, Jean-Robert, 2010. "Everyone is a winner: Promoting cooperation through all-can-win intergroup competition," European Journal of Political Economy, Elsevier, vol. 26(1), pages 25-35, March.
    6. Cheikbossian, Guillaume, 2008. "Heterogeneous groups and rent-seeking for public goods," European Journal of Political Economy, Elsevier, vol. 24(1), pages 133-150, March.
    7. Russell Cooper & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1992. "Communication in Coordination Games," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 739-771.
    8. Gil Epstein & Yosef Mealem, 2009. "Group specific public goods, orchestration of interest groups with free riding," Public Choice, Springer, vol. 139(3), pages 357-369, June.
    9. Cason, Timothy N. & Sheremeta, Roman M. & Zhang, Jingjing, 2012. "Communication and efficiency in competitive coordination games," Games and Economic Behavior, Elsevier, vol. 76(1), pages 26-43.
    10. Epstein, Gil S. & Nitzan, Shmuel, 2004. "Strategic restraint in contests," European Economic Review, Elsevier, vol. 48(1), pages 201-210, February.
    11. Gil Epstein & Shmuel Nitzan, 2006. "Reduced prizes and increased effort in contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 26(3), pages 447-453, June.
    12. Cheikbossian, Guillaume, 2005. "Lobbying, Spillovers and the Benefits of Decentralization," Cahiers du LASER (LASER Working Papers) 2005.17, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
    13. Kyung Baik, 2008. "Contests with group-specific public-good prizes," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 103-117, January.
    14. Andreas Leibbrandt & Lauri Sääksvuori, 2010. "More than Words: Communication in Intergroup Conflicts," Jena Economic Research Papers 2010-065, Friedrich-Schiller-University Jena.
    15. Gil S. Epstein & Yosef Mealem, 2009. "Group Specific Public Goods, Orchestration of Interest Groups and Free Riding," Working Papers 2009-02, Bar-Ilan University, Department of Economics.
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    Cited by:

    1. Gil S Epstein, 2012. "Employer’s information and promotion-seeking activities," Economics and Business Letters, Oviedo University Press, vol. 1(4), pages 21-32.
    2. Epstein, Gil S., 2012. "Employer's Information and Promotion-Seeking Activities," IZA Discussion Papers 7023, Institute for the Study of Labor (IZA).
    3. repec:elg:eechap:15325_6 is not listed on IDEAS

    More about this item

    Keywords

    Contests; rent seeking; public good; easy-riding.;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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