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Governance and competition

Felix Kölle

European Economic Review, 2022, vol. 148, issue C

Abstract: When groups compete against each other in contests or tournaments they typically differ with regard to the way they are organized and how decisions within groups are determined. In this paper, I experimentally investigate the impact of a group’s organizational structure on inter-group contests. My results show that letting group members decide autonomously leads to significantly lower levels of competition compared to when groups are organized democratically or autocratically. Contrary to my theoretical predictions, I observe no differences between democratically and autocratically organized groups. One reason for this finding is that many individuals in the role of autocratic decision-makers do not use their power to fully exploit their subordinates. Despite this, I find that when giving group members the choice, most individuals prefer the democratic regime, which guarantees them participation in the decision-making process and protects them from exploitation.

Keywords: Conflict; Competition; Organizational style; Voting; Groups; Experiment (search for similar items in EconPapers)
JEL-codes: C72 C92 D74 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:148:y:2022:i:c:s0014292122001167

DOI: 10.1016/j.euroecorev.2022.104199

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European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

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