Sabotage in tournaments: evidence from a laboratory experiment

Arbeitspapier

Although relative performance schemes are pervasive in organizations reliable empirical data on induced sabotage behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm one of the key insights from theory: effort and sabotage increase with the wage spread. Additionally, we find that even in the presence of tournament incentives, agents react reciprocally to higher wages, which mitigates the sabotage problem. Destructive activities are reduced by explicitly calling them by their name 'sabotage'. Communication among principal and agents curbs sabotage due to agreements on flat prize structures and increased output.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4205

Classification and Topics

• Classification: Wirtschaft ; Personnel Economics: Compensation and Compensation Methods and Their Effects ; Compensation Packages; Payment Methods ; Labor Contracts ; Organization of Production ; Noncooperative Games ; Design of Experiments: Laboratory, Individual
• Subject: Sabotage ; tournament ; reciprocity ; relative performance scheme ; experiment ; Extensives Spiel ; Leistungsorientierte Vergütung ; Leistungsmotivation ; Arbeitsethik ; Austauschtheorie (Soziologie) ; Test

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Harbring, Christine ; Irlenbusch, Bernd
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/35310
• URN: urn:nbn:de:101:1-20090615204
• Last update: 10.03.2025, 11:44 AM CET