The Persistent Effect of Competition on Prosociality

Fabian Kosse, Ranjita Rajan, Michela Tincani and Michela Maria Tincani

No 10779, CESifo Working Paper Series from CESifo

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
New Economics Papers: this item is included in nep-evo and nep-exp
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