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Competition, cooperation, and collective choice

Author

Listed:
  • Thomas Markussen

    (Department of Economics)

  • Ernesto Reuben

    (Columbia University and IZA)

  • Jean-Robert Tyran

    (University of Vienna, University of Copenhagen, and CEPR)

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

  • Thomas Markussen & Ernesto Reuben & Jean-Robert Tyran, 2012. "Competition, cooperation, and collective choice," Discussion Papers 12-04, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:1204
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    References listed on IDEAS

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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. Pietro Battiston & Simona Gamba, 2020. "When the two ends meet: an experiment on cooperation and social capital," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 911-940, October.
    3. Safarzynska, Karolina & Sylwestrzak, Marta, 2021. "Resource depletion and conflict: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 902-917.
    4. Kenju Kamei & Louis Putterman & Jean-Robert Tyran, 2019. "Civic Engagement as a Second-Order Public Good: The Cooperative Underpinnings of the Accountable State," Discussion Papers 19-10, University of Copenhagen. Department of Economics.
    5. 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).
    6. Kamei, Kenju & Putterman, Louis & Tyran, Jean-Robert, 2023. "Civic engagement, the leverage effect and the accountable state," European Economic Review, Elsevier, vol. 156(C).
    7. Peter Martinsson & Emil Persson, 2019. "Public Goods and Minimum Provision Levels: Does the Institutional Formation Affect Cooperation?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(4), pages 1473-1499, October.
    8. Philippos Louis & Matías Núñez & Dimitrios Xefteris, 2022. "The Virtuous Cycle of Agreement," The Economic Journal, Royal Economic Society, vol. 132(641), pages 326-360.
    9. De Geest, Lawrence R. & Stranlund, John K. & Spraggon, John M., 2017. "Deterring poaching of a common pool resource," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 254-276.
    10. Herrera, Helios & Reuben, Ernesto & Ting, Michael M., 2017. "Turf wars," Journal of Public Economics, Elsevier, vol. 152(C), pages 143-153.
    11. 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.
    12. Roman M. Sheremeta, 2018. "Behavior In Group Contests: A Review Of Experimental Research," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 683-704, July.
    13. Wang, Yizi, 2023. "Intergroup competition, group status, and individuals’ cooperation behavior: Evidence from a laboratory experiment," Finance Research Letters, Elsevier, vol. 56(C).
    14. Pedro Dal Bo & Andrew Foster & Kenju Kamei, 2019. "The Democracy Effect: a weights-based identification strategy," Working Papers 2019-4, Brown University, Department of Economics.
    15. Jensen, Thomas & Markussen, Thomas, 2021. "Group size, signaling and the effect of democracy," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 258-273.
    16. Caginalp, Gunduz & Ho, Shirley J., 2018. "Does competition inhibit fairness and altruism?," Economic Modelling, Elsevier, vol. 72(C), pages 54-64.
    17. Francisca Jiménez-Jiménez, 2023. "Heterogeneity, coordination and competition: the distribution of individual preferences in organisations," Economics of Governance, Springer, vol. 24(1), pages 67-107, March.
    18. Thomas Markussen & Jean-Robert Tyran, 2023. "Is There a Dividend of Democracy? Experimental Evidence from Cooperation Games," CESifo Working Paper Series 10616, CESifo.
    19. Huang, Lingbo & Murad, Zahra, 2021. "Fighting alone versus fighting for a team: An experiment on multiple pairwise contests," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 616-631.

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    More about this item

    Keywords

    public goods; competition; tournament; cooperation; voting;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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