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Peer Effects of Ambition

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  • Albert, Philipp

    (WZB Berlin)

  • Kübler, Dorothea

    (WZB Berlin)

  • Silva-Goncalves, Juliana

    (University of Sydney)

Abstract

Ambition as the desire for personal achievement is an important driver of behavior. Using laboratory experiments, we study the role of social influence on ambition in two distinct domains of achievement, namely performance goals and task complexity. In the first case, participants set themselves a performance goal for a task they have to work on. The goal is associated with a proportional bonus that is added to a piece rate if the goal is reached. In the second case, they choose the complexity of the task, which is positively associated with the piece rate compensation and effort. In both cases we test whether observing peer choices influences own choices. We find strong evidence of peer effects on performance goals. In contrast, we find no support for peer effects on the choice of task complexity.

Suggested Citation

  • Albert, Philipp & Kübler, Dorothea & Silva-Goncalves, Juliana, 2019. "Peer Effects of Ambition," Rationality and Competition Discussion Paper Series 148, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:148
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    More about this item

    Keywords

    peer effects; ambition; goal setting; task difficulty; laboratory experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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