We study loyalty in groups that are exogenously assigned based on members' performances in a task. We observe that in-group bias is strong and significant among subjects who score high in performance, and that it is weak and insignificant among those who score low. This asymmetric pattern is...

We analyze the interplay of group identity and inter-group conflict in a contest where each of two conflicting groups can develop either a group or an individualistic identity. Contest structures impact on the adoption of identities which themselves influence behavior in the contest. We show the...

We analyze the infuence of the number of competitors, the costs of doping and the distribution of talents on the doping behavior. In an n-player strategic game modelled as an all-pay auction, the players have private information about their talent and the amount of doping. The main finding of...

This paper suggests a potential rationale for the recent empirical finding that overconfident agents tend to self-select into more competitive environments (e.g. Dohmen and Falk, 2006). In particular, it shows that moderate overconfidence in a contest can improve the agent's performance relative...

This article presents results of a laboratory experiment testing whether the effectiveness of a moderate leniency program depends on market size. Against theory, the results indicate that a moderate leniency program is not preferable to a policy which only includes fines for detected cartels,...

We contrast a standard deterministic signaling game with one where the signal-generating mechanism is stochastic. With stochastic signals a unique equilibrium emerges that involves separation and has intuitive comparative-static properties as the degree of signaling depends on the prior type...

The psychology literature provides ample evidence that people have difficulties taking the perspective of less informed others. This paper presents a controlled experiment showing that this "curse of knowledge" can cause comparative overconfidence and overentry into competition. In a broader...