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Rivals without a cause? Relative performance feedback creates destructive competition despite aligned incentives

Bibliographic Data

ID12166455
AuthorsJan K Woike (0000-0002-6816-121X, Center for Adaptive Rationality (ARC) Max Planck Institute for Human Development Berlin Germany, corresponding author), Sebastian Hafenbrädl (0000-0002-5148-766X, IESE Business School Barcelona Spain)
Year2020
Volume33
Issue4
Pages523-537
Publication date2020-02-12
Open AccessYes
TypeARTICLE
VenueJournal of Behavioral Decision Making (JOURNAL)
Journal identifiersISSN: 0894-3257 • E-ISSN: 1099-0771
PublisherWiley (PUBLISHER • GB)
DOI10.1002/bdm.2162
OpenAlexW3005910435
LanguageEN
Citations received3
References cited97

Whether people compete or cooperate with each other has consequences for their own performance and that of organizations. To explain why people compete or cooperate, previous research has focused on two main factors: situational outcome structures and personality types. Here, we propose that—above and beyond these two factors—situational cues, such as the format in which people receive feedback, strongly affect whether they act competitively, cooperatively, or individualistically. Results of a laboratory experiment support our theorizing: After receiving ranking feedback, both students and experienced managers treated group situations with cooperative outcome structures as competitive and were in consequence willing to forgo guaranteed financial gains to pursue a—financially irrelevant—better rank. Conversely, in dilemma situations, feedback based on the joint group outcome led to more cooperation than ranking feedback. Our study contributes to research on competition, cooperation, interdependence theory, forced ranking, and the design of information environments

Affect (linguistics · Business · Competition (biology · Dilemma · Economics · Incentive · Microeconomics · Outcome (game theory · Personality · Rank (graph theory · Ranking (information retrieval · Situational ethics · Computer Science · Evolutionary Game Theory and Cooperation · Experimental Behavioral Economics Studies · Game Theory and Applications · Psychology · Social Psychology

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Citations per year0.5
Citation span2020 - 2026 (7)
Highly citedNo

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