ICES Seminar in Experimental Economics and Game Theory

Contests Within and Between Groups: Theory and Experiment

Friday, October 1, 2021 12:00 PM to 1:00 PM EDT
Online Location, Zoom Meeting

ICES Seminar in Experimental Economics and Game Theory

The ICES Seminar in Experimental Economics and Game Theory of the Fall 2021 semester will feature:

Puja Bhattacharya

University of Arkansas

Contests Within and Between Groups: Theory and Experiment

 

Please contact ICES Office Manager (sbahabib@gmu.edu) for Zoom link.

 

Abstract

We examine behavior in a two-stage group contest where intra-group contests are followed by an inter-group contest. Rewards accrue to the winning group, with winners of the intra-group contest within that group receiving a greater reward. The model generates a discouragement effect, where losers from the first stage exert less effort in the second stage than winners. In contrast to previous frameworks of sequential contests, we show that a prior win may be disadvantageous, generating lower profits for first stage winners as compared to losers. We consider exogenous asymmetry between groups arising from a biased group contest success function. Although the asymmetry occurs in the second stage, its effect plays out in the first stage, with higher intra-group conflict in the advantaged group. Experimental results support the qualitative predictions of the model. However, losers from the first stage bear a higher burden of the group contribution than deemed strategic.

 

For more information about the Seminar Series, please visit the Seminar Schedule homepage.

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