Splitting leagues: promotion and demotion in contribution-based regrouping experiments

A-Tier
Journal: Experimental Economics
Year: 2013
Volume: 16
Issue: 3
Pages: 426-441

Authors (4)

Susana Cabrera (not in RePEc) Enrique Fatás (Universidad Icesi) Juan Lacomba (not in RePEc) Tibor Neugebauer (Université du Luxembourg)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

The paper reports an experimental study on a promotion-demotion mechanism to mitigate the free-rider problem in a voluntary contribution setting. The mechanism hierarchically splits a group in two; we refer to one subgroup as the Major league and to the other as the minor league. The most cooperative subject of the minor league is switched with the least cooperative subject in the Major league. The results reveal a significant increase of cooperation levels in both leagues relative to the standard voluntary contribution mechanism. We argue that a lack of sequentially-rational beliefs about continuation payoffs in Major and minor leagues leads to higher equilibrium contributions. The data suggest beyond that, the promotion-demotion mechanism regroups subjects deliberately according to their cooperativeness. Copyright Economic Science Association 2013

Technical Details

RePEc Handle
repec:kap:expeco:v:16:y:2013:i:3:p:426-441
Journal Field
Experimental
Author Count
4
Added to Database
2026-01-25