Competition and cooperation in markets. The experimental case of a winner-take-all setting

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2010
Volume: 39
Issue: 2
Pages: 163-170

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The aim of this experiment is twofold. First of all, we want to investigate whether a winner-take-all scenario where subjects with homogeneous skills meet more than once stimulates subjects' cooperation. Secondly, we want to compare agents' tendency to cooperate in settings with different levels of competition. We ran three treatments. The first one reproduces the classical public good game. The second environment represents a perfect competition market, while in the third treatment we consider a winner-take-all market. The most relevant result we obtain is that while perfect competition forces players to be efficient and to behave as they were self-interested, a winner-take-all market induces strategic cooperation.

Technical Details

RePEc Handle
repec:eee:soceco:v:39:y:2010:i:2:p:163-170
Journal Field
Experimental
Author Count
2
Added to Database
2026-01-26