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Inter-team contests with power differential.

Authors :
Bhattacharya, Puja
Source :
Journal of Economic Behavior & Organization. Dec2016 Part A, Vol. 132, p157-175. 19p.
Publication Year :
2016

Abstract

We investigate the impact of asymmetry on behavior in inter-team contests. In asymmetric environments, one team has a greater probability of winning given the same contribution level (unfair contests) or has a lower cost of contributing (uneven contests). We explore how such asymmetries impact behavior, asking how being advantaged or disadvantaged influences contributions. We find both advantaged and disadvantaged teams contribute much more than theory predicts, but in such a way that ex-post winning probabilities of the contests are consistent with theoretical predictions. At the individual level, contributions are predicted by beliefs about own team and opponent team contributions. The determinants of contribution by members of the disadvantaged team differ depending on the nature of asymmetry. Contributions by the disadvantaged team members are responsive to beliefs about contribution by opponents in unfair contests while in uneven contests they are responsive to beliefs about the contribution by teammates. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
01672681
Volume :
132
Database :
Academic Search Index
Journal :
Journal of Economic Behavior & Organization
Publication Type :
Academic Journal
Accession number :
119928342
Full Text :
https://doi.org/10.1016/j.jebo.2016.09.004