The Persistent Effect of Competition on Prosociality

Fabian Kosse, Ranjita Rajan and Michela Tincani
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Fabian Kosse: University of Würzburg, briq
Ranjita Rajan: The Karta Initiative
Michela Tincani: University College London

No 449, Rationality and Competition Discussion Paper Series from CRC TRR 190 Rationality and Competition

Abstract: We present the first causal evidence on the persistent impact of enduring competition on prosociality. Inspired by the literature on tournaments within firms, which shows that competitive compensation schemes reduce cooperation in the short-run, we explore if enduring exposure to a competitive environment persistently attenuates prosociality. Based on a large-scale randomized intervention in the education context, we find lower levels of prosociality for students who just experienced a 2-year competition period. 4-year follow-up data indicate that the effect persists and generalizes, suggesting a change in traits and not only in behavior.

Keywords: prosociality; competition; cooperation; social skills; socio-emotional skills; tournaments; comparative pay; incentive schemes (search for similar items in EconPapers)
JEL-codes: C90 D64 (search for similar items in EconPapers)
Date: 2023-11-11
New Economics Papers: this item is included in nep-exp and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:rco:dpaper:449

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