Partners or rivals? An experimental study of a two-stage tournament

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2019
Volume: 158
Issue: C
Pages: 288-310

Authors (5)

Chao, Hong (not in RePEc) Ho, Chun-Yu (University at Albany, State Un...) Huang, Shaoqing (not in RePEc) Qin, Xiangdong (not in RePEc) Cong, Jiajia (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

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

Abstract

We consider a two-stage tournament in which two alliances compete in stage one. Members of the winning alliance then compete against each other in stage two. Members’ investment in stage one could increase their alliance's winning probability, but could also be appropriated and used against them by their partners-turned-rivals in stage two. This hold-up problem creates a negative incentive for within-alliance cooperation. We test this theoretical benchmark in an experiment. In a second experiment, we investigate whether ex-ante informal agreements deter appropriation. We find that such agreements are honored, and thus encourage investments, only under the fixed matching condition.

Technical Details

RePEc Handle
repec:eee:jeborg:v:158:y:2019:i:c:p:288-310
Journal Field
Theory
Author Count
5
Added to Database
2026-02-02