Discussion Paper Details

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Title: Competition, Cooperation, and Collective Choice

Author(s): Thomas Markussen, Ernesto Reuben and Jean-Robert Tyran

Publication Date: August 2012

Keyword(s): public goods; competition; tournament; cooperation; voting

Programme Area(s): Public Economics

Abstract: The ability of groups to implement efficiency-enhancing institutions is emerging as a central theme of research in economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma situation. Experimental results show that the competitive scheme fosters cooperation. Competition is popular but the electoral outcome depends strongly on specific voting rules of institutional choice. If the majority decides, competition is almost always adopted. If likely losers from competition have veto power, it is often not, and substantial gains in efficiency are foregone.

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Bibliographic Reference

Markussen, T, Reuben, E and Tyran, J. 2012. 'Competition, Cooperation, and Collective Choice'. London, Centre for Economic Policy Research.