Competition and Incentives

Arbeitspapier

We report on two experiments that identify non-monetary incentive effects of competition. As the number of competitors increases, monetary incentives to engage in cost reduction tend to decrease. We test the hypothesis that there are non-monetary incentive effects of competition going in the opposite direction. In the experiments we change the number of competitors exogenously keeping the monetary incentives to spend effort constant. The first experiment shows that subjects spend significantly more effort in duopolistic and oligopolistic markets than in a monopoly. The second experiment focuses on social comparisons as one potential mechanism for this effect. It shows that competition turns the effort decisions of competing managers into strategic complements.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper ; No. 31

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Structure, Firm Strategy, and Market Performance: General ; Innovation and Invention: Processes and Incentives
• Thema: incentive effects of competition ; behavioral industrial organization

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schmidt, Klaus ; Fey, Lisa ; Thoma, Carmen
• Ereignis: Veröffentlichung
• (wer): Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
• (wo): München und Berlin
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/185701
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ