Spillover effects of competition outcome on future risky cooperation

Yansong Li, Zhenliang Liu, Yuqian Wang, Edmund Derrington, Frederic Moisan () and Jean-Claude Dreher
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Frederic Moisan: EM - EMLyon Business School

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Abstract: "There is growing evidence that risky cooperation is regulated by the experience of previous interactions with others. However, it is unclear how the evaluation of outcomes from competitive interactions can affect individuals' subsequent cooperative behavior. To address this issue, we examined how participants cooperated with a partner having just competed with them. While competing, participants (N = 164) were randomly assigned to receive one of four types of outcome feedback regarding their performance (victory vs. defeat vs. uncertain vs. no competition (control)). We found that both the experience of defeats and of uncertainty as competitive outcomes exerted a negative impact on the extent to which participants then engaged in cooperative behavior with their recent opponents. This only occurred when such subsequent cooperative behavior involved a high potential for incurring personal costs but not when there was no risk of incurring personal costs and a positive return. Finally, mediation analysis revealed that the effect of defeat was mediated by participants' level of interpersonal trust and the extent to which participants were willing to cooperate, while the effect of the uncertain competitive outcome was mediated only by the extent to which participants were willing to cooperate. These findings offer novel insights into how risky cooperation is modulated by previous competition."

Date: 2023-04-04
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-mac
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Published in Scientific Reports, 2023, 13, 12 p

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