Intragroup competition in public good games: The role of relative performance incentives and risk attitudes
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Other documents of the author: Colasante, Annarita; García-Gallego, Aurora; Georgantzis, Nikolaos; MORONE, ANDREA; Temerario, Tiziana
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Show full item recordcomunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
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Title
Intragroup competition in public good games: The role of relative performance incentives and risk attitudesAuthor (s)
Date
2019-03-27Publisher
WileyBibliographic citation
COLASANTE, Annarita, et al. Intragroup competition in public good games: The role of relative performance incentives and risk attitudes. Journal of Public Economic Theory, 2019.Type
info:eu-repo/semantics/articlePublisher version
https://onlinelibrary.wiley.com/doi/full/10.1111/jpet.12369Version
info:eu-repo/semantics/acceptedVersionSubject
Abstract
We analyze a public good game (PGG) with intragroup competition in which, generally but not always, the dominant strategy is to not contribute; therefore, free riding is the unique Nash equilibrium, not achieving ... [+]
We analyze a public good game (PGG) with intragroup competition in which, generally but not always, the dominant strategy is to not contribute; therefore, free riding is the unique Nash equilibrium, not achieving Pareto efficiency. We propose a PGG setup where subjects' contributions are rewarded with different individual returns following a rank‐order voluntary contribution mechanism. It is found that the resulting competition for a better return significantly increases contributions. This effect is sensitive to the salience of return differences rewarding higher contributions. Furthermore, the positive effect of return differences on contribution levels depends on an individual's return‐to‐risk sensitivity as elicited through an independent risk elicitation task. [-]
Investigation project
Universitat Jaume I (Grant UJI‐B2018‐76) ; Ministerio de Economía y Competitividad (Spain) (Grant ECO2015‐68469‐R)Rights
© 2019 Wiley Periodicals, Inc.
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