Partners or Rivals? An Experimental Study of a Two-Stage Tournament

Hong Chao; Chun-Yu Ho; Shaoqing Huang; Xiangdong Qin; Jiajia Cong

doi:10.1016/j.jebo.2018.11.023

Author(s)

Hong Chao
Chun-Yu Ho
Shaoqing Huang
Xiangdong Qin
Jiajia Cong

Detail(s)

Original language	English
Pages (from-to)	288-310
Journal / Publication	Journal of Economic Behavior & Organization
Volume	158
Online published	6 Dec 2018
Publication status	Published - Feb 2019
Externally published	Yes

Link(s)

DOI	DOI https://doi.org/10.1016/j.jebo.2018.11.023 Final Published version
	Check@CityULib
Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-85057868261&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(9d8dec22-18cc-405d-a6d3-398bb2c8ed9a).html

Abstract

We consider a two-stage tournament in which two alliances compete in stage one. Members of the winning alliance then compete against each other in stage two. Members’ investment in stage one could increase their alliance’s winning probability, but could also be appropriated and used against them by their partners-turned-rivals in stage two. This hold-up problem creates a negative incentive for within-alliance cooperation. We test this theoretical benchmark in an experiment. In a second experiment, we investigate whether ex-ante informal agreements deter appropriation. We find that such agreements are honored, and thus encourage investments, only under the fixed matching condition.

© 2018 Elsevier B.V. All rights reserved.

Research Area(s)

Two-stage tournament, Alliance, Hold-up problem, Appropriation, Informal agreement

Citation Format(s)

[ RIS ] [ BibTeX ]

Partners or Rivals? An Experimental Study of a Two-Stage Tournament. / Chao, Hong; Ho, Chun-Yu; Huang, Shaoqing et al.
In: Journal of Economic Behavior & Organization, Vol. 158, 02.2019, p. 288-310.

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

Chao, H, Ho, C-Y, Huang, S, Qin, X & Cong, J 2019, 'Partners or Rivals? An Experimental Study of a Two-Stage Tournament', Journal of Economic Behavior & Organization, vol. 158, pp. 288-310. https://doi.org/10.1016/j.jebo.2018.11.023

Chao, H., Ho, C.-Y., Huang, S., Qin, X., & Cong, J. (2019). Partners or Rivals? An Experimental Study of a Two-Stage Tournament. Journal of Economic Behavior & Organization, 158, 288-310. https://doi.org/10.1016/j.jebo.2018.11.023

Chao H, Ho CY, Huang S, Qin X, Cong J. Partners or Rivals? An Experimental Study of a Two-Stage Tournament. Journal of Economic Behavior & Organization. 2019 Feb;158:288-310. Epub 2018 Dec 6. doi: 10.1016/j.jebo.2018.11.023

Chao, Hong ; Ho, Chun-Yu ; Huang, Shaoqing et al. / Partners or Rivals? An Experimental Study of a Two-Stage Tournament. In: Journal of Economic Behavior & Organization. 2019 ; Vol. 158. pp. 288-310.