Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Coalitional Games, Excessive Competition and a Lack of Trust: an Experimental Aproach
Issue: Vol. 10, No 2, 2017
Published date: 06-2017 (print) / 06-2017 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Dawid Ners
University of Gdańsk
Keywords: coalitional games, experimental economics, first price auction, club goods, excessive competition
DOI: 10.14254/2071-789X.2017/10-2/17
Index PUBMS: 5b149997-004f-11e8-94c4-fa163e5d4f72
Language: English
Pages: 227-238 (12)
JEL classification: C71, C92, D71, D81

The article tackles the issues of the effectiveness and rationality of making choices in the conditions of competition and cooperation. It confronts the economic theory of rational choice with the empirical results from an experiment. The aim of the article is to show that excessive competition and a lack of trust cause limitation of rational choice in coalitional games. In the experiment conducted for this study purposes, a public good was used to construct a situation in which making a huge coalition is the winning strategy. Despite this fact, the research proves that under competition supported by uncertainty, which results from the lack of trust, the decision making entities behave far less rationally than the game theory would suggest. People competing with each other often take decisions irrationally.


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