The persistent effect of competition on prosociality

Fabian Kosse, Ranjita Rajan and Michela Tincani

No 18615, CEPR Discussion Papers from Centre for Economic Policy Research

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: Incentive; schemes (search for similar items in EconPapers)
JEL-codes: D64 J24 M52 (search for similar items in EconPapers)
Date: 2023-11
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