Competitiveness and Stress

19 Pages Posted: 20 Aug 2018

See all articles by Songfa Zhong

Songfa Zhong

National University of Singapore (NUS) - Department of Economics

Idan Shalev

Pennsylvania State University

David Koh

National University of Singapore (NUS)

Richard P. Ebstein

Southwestern University of Finance and Economics (SWUFE) - China Center for Behavior Economics and Finance

Soo Hong Chew

National University of Singapore; National University of Singapore; HKUST

Multiple version iconThere are 2 versions of this paper

Date Written: August 2018

Abstract

This study explores the relationship between competitiveness and stress. In Experiment 1, we observe a higher response of cortisol—the primary stress hormone—to the computation task coupled with tournament than to the computation task with piece rate. Moreover, more competitive subjects exhibit higher stress responses than their less competitive counterparts in the computation tasks under both tournament and piece rate. In Experiment 2, we find that exogenously induced stress does not significantly affect competitiveness. Overall, our findings reveal an important trade‐off between tournament and piece rate in terms of stress response with implications on the design of incentive contracts.

Suggested Citation

Zhong, Songfa and Shalev, Idan and Koh, David and Ebstein, Richard P. and Chew, Soo Hong, Competitiveness and Stress (August 2018). International Economic Review, Vol. 59, Issue 3, pp. 1263-1281, 2018, Available at SSRN: https://ssrn.com/abstract=3233202 or http://dx.doi.org/10.1111/iere.12303

Songfa Zhong (Contact Author)

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore

Idan Shalev

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

David Koh

National University of Singapore (NUS) ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Richard P. Ebstein

Southwestern University of Finance and Economics (SWUFE) - China Center for Behavior Economics and Finance ( email )

Liutai Road 555
Wenjiang
China

Soo Hong Chew

National University of Singapore ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore

National University of Singapore ( email )

Mochtar Riady Building
15 Kent Ridge Drive
Singapore, 119245
Singapore

HKUST ( email )

Clear Water Bay
Kowloon, Hong Kong
China

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