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Sabotage vs Discouragement: Which Dominates Post Promotion Tournament Behavior?

Author

Listed:
  • David Johnson

    (University of Calgary)

  • Timothy Salmon

Abstract

We explore the behavior of losers of promotion tournaments after the tournament is concluded. We do so through the use of an experiment in which we vary the design of the promotion tournament to determine how tournament design affects post tournament effort. We provide a theoretical model demonstrating two possible effects from the tournaments which are strategic sabotage and the possibility that a worker becomes discouraged by the tournament outcome. We examine behavior after the tournament and find evidence suggesting that bad tournament design can lead to workers being discouraged. This discouragement effect is strong for low ability workers but not for high ability workers. On the other hand we do find evidence that some high ability workers engage in strategic sabotage but the incidence does not vary with the design of the promotion tournament.

Suggested Citation

  • David Johnson & Timothy Salmon, "undated". "Sabotage vs Discouragement: Which Dominates Post Promotion Tournament Behavior?," Working Papers 2014-82, Department of Economics, University of Calgary, revised 10 Nov 2014.
    • Handle: RePEc:clg:wpaper:2014-82
    as

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    More about this item

    Keywords

    Sabotage; Experiment; Tournament Design;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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