Competition vs. Cooperation. Some Experimental Evidence

The effects of competition on subjects’ attitude towards cooperation are here investigated. Three groups face three economic environments with different degrees of competition, from a benchmark case with no competition at all, up to a perfect competition case. Subjects contribute generously to a public project in the absence of competition, whereas they contribute very little in the presence of the maximum degree of competition. A diminishing attitude towards cooperation clearly emerges as the degree of competition increases. Therefore, if cooperation does enhance well-being, the maximum degree of competition may be not efficient.