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Competition, Cooperation, and Collective Choice

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  • Markussen, Thomas
  • Reuben, Ernesto
  • Tyran, Jean-Robert

Abstract

The ability of groups to implement efficiency-enhancing institutions is emerging as a central theme of research in economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma situation. Experimental results show that the competitive scheme fosters cooperation. Competition is popular but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains in efficiency are foregone.

Suggested Citation

  • Markussen, Thomas & Reuben, Ernesto & Tyran, Jean-Robert, 2012. "Competition, Cooperation, and Collective Choice," CEPR Discussion Papers 9099, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9099
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    Citations

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    Cited by:

    1. Kamei, Kenju, 2014. "Promoting Competition or Helping Less-Endowed? An Experiment on Collective Institutional Choices under Intra-Group Inequality," MPRA Paper 56774, University Library of Munich, Germany.
    2. Annarita Colasante & Aurora García-Gallego & Andrea Morone & Tiziana Temerario, 2017. "The utopia of cooperation: does intra-group competition drive out free riding?," Working Papers 2017/08, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Martinsson, Peter & Persson, Emil, 2016. "Public Goods and Minimum Provision Levels: Does the institutional formation affect cooperation?," Working Papers in Economics 655, University of Gothenburg, Department of Economics.
    4. repec:eee:jeborg:v:141:y:2017:i:c:p:254-276 is not listed on IDEAS
    5. repec:eee:pubeco:v:152:y:2017:i:c:p:143-153 is not listed on IDEAS
    6. Markussen, Thomas & Tyran, Jean-Robert, 2017. "Choosing a public-spirited leader: An experimental investigation of political selection," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 204-218.
    7. Sheremeta, Roman, 2015. "Behavior in Group Contests: A Review of Experimental Research," MPRA Paper 67515, University Library of Munich, Germany.
    8. repec:bla:jecsur:v:32:y:2018:i:3:p:683-704 is not listed on IDEAS
    9. repec:eee:ecmode:v:72:y:2018:i:c:p:54-64 is not listed on IDEAS
    10. Herrera, Helios & Reuben, Ernesto & Ting, Michael M., 2017. "Turf wars," Journal of Public Economics, Elsevier, vol. 152(C), pages 143-153.

    More about this item

    Keywords

    public goods; competition; tournament; cooperation; voting;

    JEL classification:

    • 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
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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