Economic competition and survival endurance: The efficiency losses of Competition
Moreira, P.
Abstract:
The economic behaviors of competition and cooperation influence not only the transactions involving currency and valued items but virtually all the exchanges throughout the lives of individuals and organizations. When the results of the competition and cooperation patterns are compared for rationality, the advantages of the cooperation patterns are clear, both for immediate and for future outcomes. However, the dominant pattern of behavior that emerges in real exchange opportunities is not a pattern of cooperation but instead a pattern of competition. In this study the competition and cooperation patterns are observed empirically under a decision game, in which two teams are presented with a sequence of 10 exchange opportunities for which a decision must be reached. The experimental setting involves a component of decision under uncertainty since the scores can only be calculated after both teams reached their decisions. The analysis of the results of 80 full experimental trials of a decision game shows a clear dominance of competition, leading to efficiency losses when the rational possible results of the game are compared with the experimental results. The results are discussed and an explanation is proposed, arguing that the dominance of the competition pattern is favorable to the individual economic survival whilst cooperation protects the population e conomic survival endurance.
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APA citation
- Moreira, P. (2013). Economic competition and survival endurance: The efficiency losses of Competition. International Journal of Economic Sciences, 2(3), 121–130.