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Strategic Mismatches in Competing Teams

Author

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  • Kräkel, Matthias

    (University of Bonn)

Abstract

This paper discusses the strategic role of mismatching, where players voluntarily form inefficient teams or forego the formation of efficient teams, respectively. Strategic mismatching can be rational when players realize a competitive advantage (e.g. harming other competitors). In addition, the results show that free riding can be beneficial for a team in combination with strategic mismatching and that the loser’s curse may be welfare improving by mitigating the problem of strategic mismatching.

Suggested Citation

  • Kräkel, Matthias, 1999. "Strategic Mismatches in Competing Teams," IZA Discussion Papers 74, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp74
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    More about this item

    Keywords

    teams; Economies of scope; tournament; free-rider effect; mismatch;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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