ausblenden:
Schlagwörter:
Endogenous group formation, contest, conflict, alliance, experiment, moral hazard problem, free-riding, in-group favoritism
Zusammenfassung:
We study endogenous group formation in tournaments employing experimental three-player contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, strongly win-motivated players choose to stand alone. If these strong players are forced to play in an alliance, they invest even more, whereas their co-players choose lower effort. Anticipation of this exploitation may explain their preference to stand alone.
