Abstract
We study how group identity, based on university affiliation, impacts competitive behavior. Our experiment employs a simple all-pay auction within and between two university subject pools. Students within the lower-tier university bid more aggressively against each other than students within the top-tier university against each other. Lower-tier students, particularly females, bid more aggressively when competing against top-tier students. Interpreted through a theoretical model which incorporates both group identity and differential valuation of winning, our data indicate that students at the lower-tier university have a stronger group identity as well as a higher desire to win.
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