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Measuring Competitiveness and Cooperativeness

Author

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  • Thomas Demuynck
  • Christian Seel
  • Giang Tran

Abstract

We develop an index of competitiveness and cooperativeness which is based on the primitives of a normal-form game, i.e. players, strategies and payoffs. The index relies on a unique decomposition of a given game into a zero-sum game and a common-interest game. The index decreases in the distance to its zero-sum part and it increases in the distance to its common-interest part. Alternatively, the index increases if the share of variation in payoffs captured by the zero-sum part increases We compute our index for well-known classes of games such as Prisoner's Dilemma,games with Strategic Complements and Substitutes, All-pay auctions, Tullock contests, and Public Goods games. The comparative statics of our index coincide with economic intuition. The index does well in explaining experimental

Suggested Citation

  • Thomas Demuynck & Christian Seel & Giang Tran, 2019. "Measuring Competitiveness and Cooperativeness," Working Papers ECARES 2019-12, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:eca:wpaper:2013/286825
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    References listed on IDEAS

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    1. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384.
    2. Matthew Embrey & Guillaume R Fréchette & Sevgi Yuksel, 2018. "Cooperation in the Finitely Repeated Prisoner’s Dilemma," The Quarterly Journal of Economics, Oxford University Press, vol. 133(1), pages 509-551.
    3. Cason, Timothy N. & Masters, William A. & Sheremeta, Roman M., 2010. "Entry into winner-take-all and proportional-prize contests: An experimental study," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 604-611, October.
    4. Parravano, Melanie & Poulsen, Odile, 2015. "Stake size and the power of focal points in coordination games: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 94(C), pages 191-199.
    5. Edward Millner & Michael Pratt, 1989. "An experimental investigation of efficient rent-seeking," Public Choice, Springer, vol. 62(2), pages 139-151, August.
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    Cited by:

    1. Stefan Penczynski & Stefania Sitzia & Jiwei Zheng, 2020. "Compound Games, focal points, and the framing of collective and individual interests," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 20-04, School of Economics, University of East Anglia, Norwich, UK..
    2. Stefan Penczynski & Stefania Sitzia & Jiwei Zheng, 2020. "Compound games, focal points, and the framing of collective and individual interests," Working Papers 305138214, Lancaster University Management School, Economics Department.

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    Keywords

    Competitiveness; cooperativeness; index;
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