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Competition between and within Universities: Theoretical and Experimental Investigation of Group Identity and the Desire to WinZhuoqiong (Charlie) ChenLondon School of Economics & Political Science (LSE) David OngPeking University - HSBC Business School Roman M. SheremetaCase Western Reserve University September 22, 2015 Abstract: We study how salient group identity, created through competition between students from different universities, as well as differences in the value of winning impact competitive behavior. Our experiment employs a simple all-pay auction within and between two university subject pools. We find that when competing against their peers, students within the lower tier university bid more aggressively than students within the top-tier university. Also, students from the lower tier university, in particular women, bid more aggressively when competing against students from the top-tier university. These findings, interpreted through a theoretical model incorporating both group identity and differential value of winning, suggest that students at the lower tier university have a stronger group identity as well as higher desire to win.
Number of Pages in PDF File: 20 Keywords: experiments, all-pay auction, competitiveness, group identity JEL Classification: C91, D03, J7, Z13 Date posted: September 24, 2015Suggested CitationContact Information
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