Small Fish in a Big Pool: The Discouraging Effects of Relative Assessment *

Abstract

This paper studies the impact of relative assessment on performance using a quasiexperiment: club-level swimming competitions in the US. By exploiting the agegroup structure, where swimmers are assessed against peers within their age group and experience a significant shift in relative standing upon aging up, we identify the causal effects of being assessed against better-performing peers. Using a regression discontinuity design, we find that swimmers, on average, swim significantly slower after aging up. This effect is similar across genders and is most pronounced among swimmers in the middle and top of the ability distribution, while those in the bottom third show no significant change. Our findings highlight the importance of considering the psychological impacts of relative assessment in competitive environments.

Keywords: Relative Assessment, Competition, Performance

JEL Classification: J53, I29, L83, M54, Z2