Local Competition Promotes Hurtful Behaviour Towards Unknown Others

18 Pages Posted: 26 Jan 2026

See all articles by Timothy N. Cason

Timothy N. Cason

Purdue University - Krannert School of Management

Arno Riedl

Maastricht University; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); Netspar

Arthur J. H. C. Schram

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute

Aljaž Ule

University of Amsterdam - Faculty of Economics and Business (FEB)

Date Written: December 30, 2025

Abstract

Humans frequently cooperate to achieve benefits unattainable through selfish behaviour. Punishment of free-riders is key for sustaining cooperation but also costly, raising questions about the origins of such behaviour. Some evolutionary models suggest that individuals may be willing to hurt unknown others in competitive environments. However, empirical evidence about the effect of the scale of competition on strategies involving hurtful behaviour in human groups, such as spite, retaliation for hurting, and punishment of free-riders, is missing. Using a laboratory experiment, we manipulate the scale of competition to investigate its influence on hurtful and helpful behaviours, between unknown humans in an indirect reciprocity game. We observe distinct behavioural patterns between local and global competition. When competition is local and thus confined to take place within isolated groups we find frequent hurting as an expression of spite and retaliation. In contrast, when competition extends globally across several groups, hurting is used primarily for punishment of free-riders whereas helping behaviour is rewarded, which together promotes cooperation. Thus, while isolated competition fosters inefficient, antisocial behaviour, global competition encourages prosociality and cooperation.

Keywords: Spite, Generosity, Punishment, Cooperation, Isolationism

Suggested Citation

Cason, Timothy N. and Riedl, Arno M. and Schram, Arthur J. H. C. and Ule, Aljaž, Local Competition Promotes Hurtful Behaviour Towards Unknown Others (December 30, 2025). Available at SSRN: https://ssrn.com/abstract=6131526 or http://dx.doi.org/10.2139/ssrn.6131526

Timothy N. Cason

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States
765-494-1737 (Phone)

Arno M. Riedl (Contact Author)

Maastricht University ( email )

Department of Microeconomics & Public Economics
P.O. Box 616
Maastricht, 6200 MD
Netherlands

HOME PAGE: http://www.arnoriedl.com

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Arthur J. H. C. Schram

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 18
CREED
Amsterdam 1018 WB
Netherlands
+31 (0)20 525 4293 (Phone)

HOME PAGE: http://www.fee.uva.nl/creed/PEOPLE/Arthurs.htm

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Aljaž Ule

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

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