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Everyone is a Winner: Promoting Cooperation through All-Can-Win Intergroup Competition

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Listed:
  • Reuben, Ernesto

    (New York University, Abu Dhabi)

  • Tyran, Jean-Robert

    (University of Copenhagen)

Abstract

We test if cooperation is promoted by rank-order competition between groups in which all groups can be ranked first, i.e. when everyone can be a winner. This type of rank-order competition has the advantage that it can eliminate the negative externality a group's performance imposes on other groups. However, it has the disadvantage that incentives to outperform others are absent if groups perform at the same level and it therefore does not eliminate low-cooperation equilibria. We find that all-can-win competition produces a universal increase in cooperation and benefits a majority of individuals if incentives to compete are strong.

Suggested Citation

  • Reuben, Ernesto & Tyran, Jean-Robert, 2009. "Everyone is a Winner: Promoting Cooperation through All-Can-Win Intergroup Competition," IZA Discussion Papers 4112, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4112
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    More about this item

    Keywords

    public goods; cooperation; intergroup competition; experiment;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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