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  • Friedel Bolle


    (European University Viadrina)

  • Jonathan H.W. Tan


    (University of Nottingham)

  • Daniel John Zizzo


    (University of East Anglia)

Vendettas occur in many real world settings where rivals compete for a prize, e.g., winning an election or a competitive promotion, by engaging in retaliatory aggressive behavior. We present a benchmark experiment where two players have an initial probability of winning a prize. Retaliatory vendettas occur and lead agents to the worst possible outcomes in 60% to 80% of cases, counter to self interest predictions, and regardless of whether initial winning probabilities are equal or unequal. Negative emotions are important and interact with economic settings to produce large social inefficiencies. Venting emotions predicts aggression but also reduces it.

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Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2010-02.

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Date of creation: Feb 2010
Date of revision:
Handle: RePEc:not:notcdx:2010-02
Contact details of provider: Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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  1. Yves Breitmoser & Jonathan H. W. Tan & Daniel John Zizzo, 2008. "Understanding Perpetual R&D Races," Working Papers 08-22, Centre for Competition Policy, University of East Anglia.
  2. Ronald Bosman & Frans van Winden, 2002. "Emotional Hazard in a Power-to-take Experiment," Economic Journal, Royal Economic Society, vol. 112(476), pages 147-169, January.
  3. Kai A. Konrad & Dan Kovenock, 2005. "Equilibrium and Efficiency in the Tug-of-War," CESifo Working Paper Series 1564, CESifo Group Munich.
  4. Graham Loomes & Chris Starmer & Robert Sugden, 2003. "Do Anomalies Disappear in Repeated Markets?," Economic Journal, Royal Economic Society, vol. 113(486), pages C153-C166, March.
  5. Tatsuyoshi, S. & Nakamura, H., 1995. "The 'Spite' Dilema in Voluntary Contribution Mechanism Experiments," ISER Discussion Paper 0370, Institute of Social and Economic Research, Osaka University.
  6. Stahl Dale O. & Wilson Paul W., 1995. "On Players' Models of Other Players: Theory and Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 10(1), pages 218-254, July.
  7. Zizzo, Daniel John, 2003. "Money burning and rank egalitarianism with random dictators," Economics Letters, Elsevier, vol. 81(2), pages 263-266, November.
  8. Klaus Abbink & Jordi Brandts & Benedikt Herrmann & Henrik Orzen, 2008. "Inter-Group Conflict and Intra-Group Punishment in an Experimental Contest Game," UFAE and IAE Working Papers 723.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  9. Stahl, Dale O. & Haruvy, Ernan, 2006. "Other-regarding preferences: Egalitarian warm glow, empathy, and group size," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 20-41, September.
  10. Stefania Sitzia & Daniel Zizzo, 2011. "Does product complexity matter for competition in experimental retail markets?," Theory and Decision, Springer, vol. 70(1), pages 65-82, January.
  11. Daniel J. ZIZZO & Andrew J. OSWALD, 2001. "Are People Willing to Pay to Reduce Others'Incomes?," Annals of Economics and Statistics, GENES, issue 63-64, pages 39-65.
  12. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer, vol. 13(1), pages 75-98, March.
  13. Tan, Jonathan H.W. & Bolle, Friedel, 2007. "Team competition and the public goods game," Economics Letters, Elsevier, vol. 96(1), pages 133-139, July.
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