Document Type
Article
Publication Date
2010
Abstract
We experimentally investigate simultaneous decision-making in two contrasting environments: a competitive environment (a contest) and a cooperative environment (a voluntary contribution mechanism). We find that the cooperative nature of the voluntary contribution mechanism spills over to the contest, decreasing sub-optimal overbidding in the contest. However, contributions to the public good are not affected by simultaneous participation in the contest. There is a significant negative correlation between decisions made in competitive and cooperative environments, i.e. more cooperative subjects tend to be less competitive and vice versa. This correlation can be rationalized by heterogeneous social preferences towards inequality but not by bounded rationality theory.
Recommended Citation
Savikhin, A.and Sheremeta, R.M. (2010). Simultaneous decision-making in competitive and cooperative environments. ESI Working Paper 10-08. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/123
Comments
Working Paper 10-08