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Perfect-Substitutes, Best-Shot, and Weakest-Link Contests between Groups

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  • Roman Sheremeta

    (Argyros School of Business and Economics, Chapman University)

Abstract

This experiment investigates contests between groups. Each group has one strong player, with a higher valuation for the prize, and two weak players, with lower valuations. In contests where individual efforts are perfect substitutes, all players expend significantly higher efforts than predicted by theory. In best-shot contests, where group performance depends on the best performer, most of the effort is expended by strong players while weak players free-ride. In weakest-link contests, where group performance depends on the worst performer, there is almost no free-riding and all players expend similar positive efforts conforming to the group Pareto dominant equilibrium.

Suggested Citation

  • Roman Sheremeta, 2010. "Perfect-Substitutes, Best-Shot, and Weakest-Link Contests between Groups," Working Papers 10-25, Chapman University, Economic Science Institute.
  • Handle: RePEc:chu:wpaper:10-25
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    More about this item

    Keywords

    contest; between-group competition; within-group competition; asymmetry; coordination; free-riding; experiments;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • 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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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