Original paper
Endogenous group formation in experimental contests
Abstract
We experimentally study endogenous alliance formation and contest effort choices in a generic three-player contest. Differences in intrinsic or extrinsic incentives to expend effort cause self-selection. Weakly motivated players have an incentive to enter into an alliance and to free-ride on strongly motivated players; hence, strong players prefer to stand alone. Self-selection has direct consequences for effort in endogenously formed alliances....
Paper Details
Title
Endogenous group formation in experimental contests
Published Date
Feb 1, 2015
Journal
Volume
74
Pages
163 - 189
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Notes
History