Working Paper: CEPR ID: DP18615
Authors: Fabian Kosse; Ranjita Rajan; Michela Tincani
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; Prosociality; Competition; Cooperation; Social Skills; Socioemotional Skills; Tournaments
JEL Codes: D64; J24; M52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Competitive environment (L13) | prosociality (D64) |
| Exposure to competition (L19) | prosociality (D64) |
| Two-year competitive period (Z28) | prosociality (D64) |
| Competition (L13) | lower levels of prosociality (D64) |
| Competition (L13) | lasting changes in prosocial traits (D64) |
| Gender differences in response to competition (J16) | prosociality (D64) |