Pushing Through or Slacking Off? Heterogeneity on the Reaction to Rank Feedback

Florian Hett () and Felix Schmidt
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Florian Hett: Johannes Gutenberg-University

No 1806, Working Papers from Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz

Abstract: This paper studies heterogeneity in the reaction to rank feedback. In a laboratory experiment, individuals take part in a series of dynamic real-e ort contests with intermediate feedback. To solve the identification problem in estimating the causal e ect of rank feedback on subsequent e ort provision we implement a random multiplier in the first round of each contest. The realization of this multiplier then serves as a valid instrument for rank feedback. While rank feedback has a robust e ect on subsequent e ort provision on average, an explicit analysis of between-subject heterogeneity reveals that a substantial fraction of participants in fact react entirely opposite than the aggregated results indicate. We further show that this heterogeneity has consequences for overall outcomes, thereby arguing that heterogeneous sensitivities to rank feedback could have implications for the design of various policies in education and organizations.

Keywords: direct deliveries; branch-cut-and-price; weighted customer waiting times; just-in-time logistics (search for similar items in EconPapers)
JEL-codes: C91 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2018-03-30
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1806.pdf First version, 2018 (application/pdf)

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Working Paper: Pushing through or slacking off? Heterogeneity in the reaction to rank feedback (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:jgu:wpaper:1806

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