Competitiveness of Entrepreneurs and Salaried Workers

Loukas Balafoutas, Mongoljin Batsaikhan () and Matthias Sutter
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Mongoljin Batsaikhan: Middlesex University, London NW4 4BT, United Kingdom

Management Science, 2024, vol. 70, issue 5, 2900-2911

Abstract: We measure the willingness to compete of entrepreneurs and salaried workers in an experiment. Participants can choose between a piece rate and a tournament scheme in either private or public. We find that in the private condition, entrepreneurs are less competitive than salaried workers, but in the public condition, this ordering is reversed. Survey data suggest that perceived norms of appropriate behavior, along with beliefs about the instrumental value of competitiveness for professional success, can explain why entrepreneurs are more competitive when decisions are publicly observable. We also find that the latter condition improves the quality of experimental decisions.

Keywords: competitiveness; entrepreneurs; salaried workers; profits; field behavior; experiment (search for similar items in EconPapers)
Date: 2024
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http://dx.doi.org/10.1287/mnsc.2023.4838 (application/pdf)

Related works:
Working Paper: Competitiveness of Entrepreneurs and Salaried Workers (2021)
Working Paper: Competitiveness of Entrepreneurs and Salaried Workers (2021)
Working Paper: Competitiveness of entrepreneurs and salaried workers (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:70:y:2024:i:5:p:2900-2911

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