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Collusion and Strategic Favoritism in Organizations

Author

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  • Zhijun

    (ESRC Centre for Competition Policy, University of East Anglia)

Abstract

Fighting collusion has long been a challenge in organizations, whilst favoritism in organizations has long been attacked as one of the most important sources of workplace conflicts. This paper links the phenomena of collusion and favoritism together which seem to be irrelevant. We show that favoritism cannot benefit organizations where collusion is not a serious concern; meanwhile favoritism is not effective in dealing with well-organized collusion; however, strategic use of favoritism can bring conflicts among collusive subordinates and undermine the efficiency of collusion, therefore it is effective in fighting collusion.

Suggested Citation

  • Zhijun, 2008. "Collusion and Strategic Favoritism in Organizations," Working Papers 08-27, Centre for Competition Policy, University of East Anglia.
    • Handle: RePEc:ccp:wpaper:wp08-27
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    File URL: http://www.ccp.uea.ac.uk/publicfiles/workingpapers/CCP08-27.pdf
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    Keywords

    collusion; favoritism; tournaments;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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