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After The Tournament: Outcomes And Effort Provision

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  • Andrew McGee
  • Peter McGee

Abstract

Outcomes of workplace competitions may themselves influence subsequent behavior—particularly if employees feel wronged. In a laboratory experiment, we find that—consistent with inequity aversion—tournament losers supply less postcompetition effort than winners when doing so reduces their tournament opponent's earnings. Consistent with procedural fairness concerns, subjects who lose arbitrarily decided tournaments that disregard tournament effort choices supply even less post‐tournament effort than other losers. While losers' effort reductions consistent with inequity aversion persist, effort reductions following arbitrarily decided tournaments fade over time. Finally, we show that effort reductions related to inequity aversion could potentially be mitigated through workplace rotations. (JEL C90, J30, D03)

Suggested Citation

  • Andrew McGee & Peter McGee, 2019. "After The Tournament: Outcomes And Effort Provision," Economic Inquiry, Western Economic Association International, vol. 57(4), pages 2125-2146, October.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:4:p:2125-2146
    DOI: 10.1111/ecin.12816
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    Cited by:

    1. Ďuriník, Michal & Morita, Hodaka & Servátka, Maroš & Zhang, Le, 2023. "Promotions and Group Identity," MPRA Paper 119389, University Library of Munich, Germany.
    2. Kerstin Grosch & Holger A. Rau, 2020. "Procedural Unfair Wage Differentials And Their Effects On Unethical Behavior," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1689-1706, October.
    3. Grosch, Kerstin & Ibañez, Marcela & Viceisza, Angelino, 2022. "Competition and prosociality: A lab-in-the-field experiment in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
    4. Angelova, Vera & Giebe, Thomas & Ivanova-Stenzel, Radosveta, 2018. "Does a short-term increase in incentives boost performance?," Economics Letters, Elsevier, vol. 166(C), pages 31-34.
    5. David Johnson & Timothy C. Salmon, 2016. "Sabotage versus Discouragement: Which Dominates Post Promotion Tournament Behavior?," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 673-696, January.

    More about this item

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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