Peer Competition: Evidence from 5- to 95-Year-olds

José De Sousa () and Benoit Schmutz

No 2022-04, Working Papers from Center for Research in Economics and Statistics

Abstract: Good peers may help you learn, but they may also steal your spotlight. We use the panel of chess players in the French club championship to document this trade-off. With an instrumental variable strategy based on club closures, we show that better clubmates help players improve, but only when they do not monopolize the (good) opportunities to play. For players at the bottom of the club distribution, positive externalities are offset by competition. Junior players, who enjoy a steep learning curve, suffer more from peer competition in the short-run, but they may also reap higher benefits in the long-run.

Keywords: Peer effects; Competition; Participation (search for similar items in EconPapers)
JEL-codes: J24 R23 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2022-02-16
New Economics Papers: this item is included in nep-spo and nep-ure
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