A Crowding-Out Effect for Relative Income

Benno Torgler (), Bruno S. Frey (), Markus Schaffner () and Sascha Leonard Schmidt ()

No 236, School of Economics and Finance Discussion Papers and Working Papers Series from School of Economics and Finance, Queensland University of Technology

Abstract: The risk of external interventions crowding-out intrinsic motivation has long been established in economics. This paper introduces a new dimension by arguing that a crowding-out effect does become possible if individuals receive higher relative compensation. Using a unique, large data set that focuses on 26 seasons in basketball (NBA) we find empirical support for a relative crowding-out effect. Performance is reduced as a reaction to a relative income advantage.

Keywords: Crowding-out; relative income; positional concerns; motivation (search for similar items in EconPapers)
JEL-codes: D00 D60 L83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-hap, nep-lab and nep-ltv
Date: 2008-10-23
View list of references

Downloads: (external link)
http://www.bus.qut.edu.au/faculty/schools/economic ... /2008/236Torgler.pdf (application/pdf)

Related works:
Working Paper: A Crowding-out Effect for Relative Income (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:qut:dpaper:236

Access Statistics for this paper

More papers in School of Economics and Finance Discussion Papers and Working Papers Series from School of Economics and Finance, Queensland University of Technology
Contact information at EDIRC.
Series data maintained by Dr Vlad Pavlov ().