An Index of Competitiveness and Cooperativeness for Normal-Form Games
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Thomas Demuynck
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Christian Seel
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Giang Tran
- American Economic Journal: Microeconomics (Forthcoming)
Abstract
We develop an index of competitiveness and cooperativeness which
is based on the primitives of a normal-form game, i.e., players, strategies
and payoffs. The index relies on the unique decomposition of a
given game into a zero-sum game and a common-interest game. The
index decreases in the distance to its zero-sum part and it increases in
the distance to its common-interest part. The comparative statics of
our index coincide with economic intuition. The index also supports
experimental findings in well-known classes of games in the sense that
more cooperative and less competitive behavior correlates with lower
values of the index.
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