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Simultaneous Decision-Making in Competitive and Cooperative Environments

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  • Savikhin, Anya
  • Sheremeta, Roman

Abstract

We experimentally investigate simultaneous decision-making in two contrasting environments: one that encourages competition (lottery contest) and one that encourages cooperation (public good game). We find that simultaneous participation in the public good game affects behavior in the contest, decreasing sub-optimal overbidding. Contributions to the public good are not affected by participation in the contest. The direction of behavioral spillover is explained by differences in strategic uncertainty and path-dependence across games. Our design allows us to compare preferences for cooperation and competition. We find that in early periods, there is a negative correlation between decisions in competitive and in cooperative environments.

Suggested Citation

  • Savikhin, Anya & Sheremeta, Roman, 2012. "Simultaneous Decision-Making in Competitive and Cooperative Environments," MPRA Paper 46809, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46809
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    More about this item

    Keywords

    cooperation; competition; public goods; contests; experiments; behavioral spillover;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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