The N-Effect: More Competitors, Less Competition

Abstract

The present analysis introduces the N-Effect - the discovery that increasing the number of competitors (N) can decrease competitive motivation. Studies 1a-b found evidence that average test scores (e.g., SAT scores) fall as the average number of test-takers at test-taking venues increases. Study 2 found that individuals trying to finish an easy quiz among the top 20 percent in terms of speed finished significantly faster if they believed they were competing in a pool of 10 versus 100 other people. Using a social comparison orientation (SCO) scale, Study 3 showed the N-Effect occurs strongly among those high in SCO and weakly among those low in SCO. Study 4 directly linked the N-Effect to social comparison, ruling out the "ratio-bias" and finding that social comparison becomes less important as N increases. Finally, Study 5 found the N-Effect is mediated by social comparison. Limitations, future directions, and implications are discussed.

Keywords: Social comparison, competition, motivation, behavioral economics

JEL Classification: C7, D2, D7, K2, L2, L4, I2