Measuring Competitiveness and Cooperativeness

Thomas Demuynck, Christian Seel and Giang Tran

No 2019-12, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: We develop an index of competitiveness and cooperativeness which is based on the primitives of a normal-form game, i.e. players, strategies and payoffs. The index relies on a unique decomposition of a given game into a zero-sum game and a common-interest game. The index decreases in the distance to its zero-sum part and it increases in the distance to its common-interest part. Alternatively, the index increases if the share of variation in payoffs captured by the zero-sum part increases We compute our index for well-known classes of games such as Prisoner's Dilemma,games with Strategic Complements and Substitutes, All-pay auctions, Tullock contests, and Public Goods games. The comparative statics of our index coincide with economic intuition. The index does well in explaining experimental

Keywords: Competitiveness; cooperativeness; index (search for similar items in EconPapers)
Pages: 32 p.
Date: 2019-05
New Economics Papers: this item is included in nep-exp and nep-gth
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Citations: View citations in EconPapers (2)

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