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The utopia of cooperation: does intra-group competition drive out free riding?

Annarita Colasante (), Aurora García-Gallego (), Andrea Morone () and Tiziana Temerario ()
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Tiziana Temerario: IVIE and Department of Economics, Universitat Jaume I, Castellón, Spain

No 2017/08, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: We study whether intra-group competition fosters cooperation even when cooperate is not a dominant strategy. We arranged an experimental Public Good Game comparing contributions in a risky treatment with contributions in a baseline standard treatment. The intra-group competition was induced by assigning different marginal per capita return (MPCR) in accordance to the size of the contribution itself. Results show that risky MPCR are detrimental for cooperation, while intra-group competition significantly reduces free riding.

Keywords: cooperation; public good; intra-group competition; uncertainty (search for similar items in EconPapers)
JEL-codes: C72 C92 D80 H41 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2017
New Economics Papers: this item is included in nep-cdm, nep-exp and nep-gth
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