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Parochial altruism and the absence of the group size paradox in inter-group conflicts

Author

Listed:
  • Christoph March

    (University of Bamberg, Technische Universität München, and CESifo)

  • Marco Sahm

    (University of Bamberg and CESifo)

Abstract

Experiments on contests between groups typically find that large groups are more likely to win than small groups even if theory predicts otherwise. One explanation in the literature is parochial altruism: altruism towards members of the in-group and hostility towards members of the out-group. We model a mixed contest - a combination of a group contest and an individual contest - in which parochial altruism is predicted to have no impact on the groups` odds. Preliminary experimental evidence suggests that - contrary to theory - the large group is substantially more likely to win the group contest than the small group. Hence, forces beyond parochial altruism counteract the group size paradox. As deviations from theory diminish over time those other forces seem to be transient.

Suggested Citation

  • Christoph March & Marco Sahm, 2021. "Parochial altruism and the absence of the group size paradox in inter-group conflicts," Economics Bulletin, AccessEcon, vol. 41(2), pages 361-373.
  • Handle: RePEc:ebl:ecbull:eb-20-00652
    as

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    References listed on IDEAS

    as
    1. David Kelsey & Tigran Melkonyan, 2018. "Contests with ambiguity," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 1148-1169.
    2. Christoph March & Marco Sahm, 2019. "The Perks of Being in the Smaller Team: Incentives in Overlapping Contests," CESifo Working Paper Series 7994, CESifo.
    3. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    4. Majerczyk, Michael & Sheremeta, Roman & Tian, Yu, 2019. "Adding tournament to tournament: Combining between-team and within-team incentives," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 1-11.
    5. Pau Balart & Sabine Flamand & Oliver Gürtler & Orestis Troumpounis, 2018. "Sequential choice of sharing rules in collective contests," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(5), pages 703-724, October.
    6. Roman M. Sheremeta, 2013. "Overbidding And Heterogeneous Behavior In Contest Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 491-514, July.
    7. March, Christoph & Sahm, Marco, 2017. "Asymmetric discouragement in asymmetric contests," Economics Letters, Elsevier, vol. 151(C), pages 23-27.
    8. Brookins, Philip & Jindapon, Paan, 2021. "Risk preference heterogeneity in group contests," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    9. Serhat Doğan & Kerim Keskin & Çağrı Sağlam, 2019. "Sabotage in team contests," Public Choice, Springer, vol. 180(3), pages 383-405, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Contest; Rent-seeking; Experiment; Group Size Paradox; Parochial Altruism;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H4 - Public Economics - - Publicly Provided Goods

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