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Intergroup conflict aversion weakens intragroup cooperation

Author

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  • Jonathan H.W. Tan

    (Department of Economics, Nanyang Technological University, Singapore)

  • Friedel Bolle

    (European University Viadrina, Frankfurt (Oder), Germany)

Abstract

We experimentally analyze dynamic strategies and social preferences in repeated intergroup conflicts where helping partners hurts rivals. Subjects are observed to be prosocial and conflict averse, in that they cooperate more when it benefits the ingroup but hold back when it inflicts losses on the outgroup. Our structural quantal response model with limited lookahead and group-specific altruism explains the data best: subjects expect partners to play cooperative strategies, whilst they are altruistic towards rivals. Social Value Orientation responses confirm that prosocials are relatively more conflict averse, which in turn weakens cooperation.

Suggested Citation

  • Jonathan H.W. Tan & Friedel Bolle, 2019. "Intergroup conflict aversion weakens intragroup cooperation," Economic Growth Centre Working Paper Series 1904, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:1904
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    File URL: https://web.hss.ntu.edu.sg/egc/wp/2019/2019-04.pdf
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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