Competitiveness in Dynamic Group Contests: Evidence from Combined Field and Lab Data
Gutenberg School of Management and Economics Discussion Paper No. 1303
31 Pages Posted: 5 Jun 2013 Last revised: 14 Jun 2013
Date Written: May 5, 2013
We analyse data from a ﬁeld setting in which students participate in a dynamic group contest with feedback. We combine this information with a laboratory measure of competitiveness. We ﬁnd that competitive groups perform worse overall. In addition, we ﬁnd that participants react to intermediate performance: A better rank in a given period increases the number of points in the subsequent period, even after controlling for group and time ﬁxed effects. The effect is significantly stronger for competitive groups. We show that this difference in the sensitivity to dynamic incentives can explain the overall negative effect of competitiveness on performance.
Keywords: Dynamic contest, competitiveness, ﬁeld experiments, lab experiments, rank feedback
JEL Classification: C91, C93, D03, D74, I21
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