Competition versus cooperation: Some experimental evidence

We investigate the effects of competition on subjects' attitude towards cooperation. Three groups face three economic environments with different degrees of competition, from a benchmark case with no competition at all up to a perfect competition case. Subjects contribute generously to a public project in the absence of competition, whereas they contribute very little in the presence of a maximum degree of competition. A diminishing attitude towards cooperation clearly emerges as the degree of competition increases. Therefore, if cooperation does enhance well-being, the maximum degree of competition may be not efficient.