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Strategic Mismatches in Competing Teams

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This paper discusses the strategic role of mismatching, where players voluntarily form inefficient teams or forego the formation of efficient teams, respectively. Strategic mismatching can be rational when players realize a competitive advantage (e.g. harming other competitors). In addition, the results show that free riding can be beneficial for a team in combination with strategic mismatching and that the loser?s curse may be welfare improving by mitigating the problem of strategic mismatching.

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Matthias Kräkel

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Adapt according to the presented license agreement and reference the original author.