TY - UNPB

T1 - Competition, cooperation, and collective choice

AU - Markussen, Thomas

AU - Reuben Paris, Ernesto Guillermo

AU - Tyran, Jean-Robert Karl

N1 - JEL Classification: D72, J33, H41

PY - 2012

Y1 - 2012

N2 - The ability of groups to implement efficiency-enhancing institutions is emerging as a central theme of research in economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma situation. Experimental results show that the competitive scheme fosters cooperation. Competition is popular but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains in efficiency are foregone.

AB - The ability of groups to implement efficiency-enhancing institutions is emerging as a central theme of research in economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma situation. Experimental results show that the competitive scheme fosters cooperation. Competition is popular but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains in efficiency are foregone.

KW - Faculty of Social Sciences

KW - public goods

KW - competition

KW - tournament

KW - cooperation

KW - Voting

M3 - Working paper

T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)

BT - Competition, cooperation, and collective choice

PB - Department of Economics, University of Economics

ER -