Advanced Search
MyIDEAS: Login

The Provision of Relative Performance Feedback Information: An Experimental Analysis of Performance and Happiness

Contents:

Author Info

  • Ghazala Azmat
  • Nagore Iriberri

Abstract

This paper studies the effect of providing relative performance feedback information on individual performance and on individual affective response, when agents are rewarded according to their absolute performance. In a laboratory set-up, agents perform a real effort task and when receiving feedback, they are asked to rate their happiness, arousal and feeling of dominance. Control subjects learn only their absolute performance, while the treated subjects additionally learn the average performance in the session. Performance is 17 percent higher when relative performance feedback is provided. Furthermore, although feedback increases the performance independent of the content (i.e., performing above or below the average), the content is determinant for the affective response. When subjects are treated, the inequality in the happiness and the feeling of dominance between those subjects performing above and below the average increases by 8 and 6 percentage points, respectively.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://research.barcelonagse.eu/tmp/working_papers/454.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 454.

as in new window
Length:
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:bge:wpaper:454

Contact details of provider:
Postal: Ramon Trias Fargas, 25-27, 08005 Barcelona
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Email:
Web page: http://www.barcelonagse.eu
More information through EDIRC

Related research

Keywords: Relative performance; piece-rate; feedback; social comparison; happiness;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Andrew E. Clark & David Masclet & Marie-Claire Villeval, 2008. "Effort and comparison income: experimental and survey evidence," LSE Research Online Documents on Economics 28502, London School of Economics and Political Science, LSE Library.
  2. Gächter, Simon & Thöni, Christian, 2010. "Social Comparison and Performance: Experimental Evidence on the Fair Wage-Effort Hypothesis," IZA Discussion Papers 4687, Institute for the Study of Labor (IZA).
  3. Eriksson, Tor & Poulsen, Anders & Villeval, Marie Claire, 2008. "Feedback and Incentives: Experimental Evidence," IZA Discussion Papers 3440, Institute for the Study of Labor (IZA).
  4. Florian Ederer, 2010. "Feedback and Motivation in Dynamic Tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(3), pages 733-769, 09.
  5. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance In Competitive Environments: Gender Differences," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1049-1074, August.
  6. Uri Gneezy & Kenneth Leonard & John List, 2009. "Gender differences in competition: Evidence from a matrilineal and a patriarchal society," Artefactual Field Experiments 00049, The Field Experiments Website.
  7. Oswald, Andrew J. & Proto, Eugenio & Sgroi, Daniel, 2008. "Happiness and Productivity," The Warwick Economics Research Paper Series (TWERPS) 882, University of Warwick, Department of Economics.
  8. Ockenfels, Axel & Sliwka, Dirk & Werner, Peter, 2010. "Bonus Payments and Reference Point Violations," IZA Discussion Papers 4795, Institute for the Study of Labor (IZA).
  9. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
  10. Josse Delfgaauw & Robert Dur & Joeri Sol & Willem Verbeke, 2009. "Tournament Incentives in the Field: Gender Differences in the Workplace," Tinbergen Institute Discussion Papers 09-069/1, Tinbergen Institute, revised 20 Apr 2012.
  11. Kuhnen, Camelia M. & Tymula, Agnieszka, 2008. "Rank expectations, feedback and social hierarchies," MPRA Paper 13428, University Library of Munich, Germany, revised Jan 2009.
  12. Florian Ederer & Ernst Fehr, 2007. "Deception and Incentives. How Dishonesty Undermines Effort Provision," IEW - Working Papers 341, Institute for Empirical Research in Economics - University of Zurich.
  13. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  14. Ben Greiner & Axel Ockenfels & Peter Werner, 2010. "Wage Transparency and Performance: A Real-Effort Experiment," Working Paper Series in Economics 48, University of Cologne, Department of Economics.
  15. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-45, March.
  16. Ghazala Azmat & Nagore Iriberri, 2009. "The importance of relative performance feedback information: Evidence from a natural experiment using high school students," Economics Working Papers 1148, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2010.
  17. Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away from Competition? Do Men Compete too Much?," Discussion Papers 04-030, Stanford Institute for Economic Policy Research.
  18. Beno�t S.Y. Crutzen & Otto H. Swank & Bauke Visser, 2007. "Confidence Management: On Interpersonal Comparisons in Teams," Tinbergen Institute Discussion Papers 07-040/1, Tinbergen Institute.
  19. Alex Gershkov & Motty Perry, 2006. "Tournaments with Midterm Reviews," Discussion Paper Series dp414, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  20. Robin Hogarth & Natalia Karelaia & Carlos Andrés Trujillo, 2009. "Under-achievement and the glass ceiling: Evidence from a TV game show," Economics Working Papers 1165, Department of Economics and Business, Universitat Pompeu Fabra.
  21. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2012. "Team Incentives: Evidence from a Firm Level Experiment," IZA Discussion Papers 6279, Institute for the Study of Labor (IZA).
  22. Ed Hopkins & Tatiana Kornienko, 2004. "Running to Keep in the Same Place: Consumer Choice as a Game of Status," ESE Discussion Papers 92, Edinburgh School of Economics, University of Edinburgh.
  23. Stephen Eliot Hansen, 2010. "The benefits of limited feedback in organizations," Economics Working Papers 1232, Department of Economics and Business, Universitat Pompeu Fabra.
  24. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  25. Wieland Muller & Andrew Schotter, 2007. "Workaholics and Drop Outs in Optimal Organizations," Working Papers 0022, New York University, Center for Experimental Social Science.
  26. George Loewenstein, 2000. "Emotions in Economic Theory and Economic Behavior," American Economic Review, American Economic Association, vol. 90(2), pages 426-432, May.
  27. Pablo Casas-Arce & F. Asís Martínez-Jerez, 2009. "Relative Performance Compensation, Contests, and Dynamic Incentives," Management Science, INFORMS, vol. 55(8), pages 1306-1320, August.
  28. Kate Antonovics & Peter Arcidiacono & Randall Walsh, 2009. "The Effects of Gender Interactions in the Lab and in the Field," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 152-162, February.
  29. Muriel Niederle & Alexandra H. Yestrumskas, 2008. "Gender Differences in Seeking Challenges: The Role of Institutions," NBER Working Papers 13922, National Bureau of Economic Research, Inc.
  30. Clark, Andrew E. & Frijters, Paul & Shields, Michael A., 2007. "Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," IZA Discussion Papers 2840, Institute for the Study of Labor (IZA).
  31. Alexander Matros & Ernest K.Lai, 2006. "Sequential Contests with Ability Revelation," Working Papers 203, University of Pittsburgh, Department of Economics, revised Apr 2007.
  32. Brandts, Jordi & Riedl, Arno & van Winden, Frans, 2009. "Competitive rivalry, social disposition, and subjective well-being: An experiment," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1158-1167, December.
  33. Kräkel, Matthias, 2008. "Emotions in tournaments," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 204-214, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Bigoni, Maria & Fort, Margherita & Nardotto, Mattia & Reggiani, Tommaso, 2011. "Teams or Tournaments? A Field Experiment on Cooperation and Competition among University Students," IZA Discussion Papers 5844, Institute for the Study of Labor (IZA).
  2. Stephen Eliot Hansen, 2010. "The Benefits of Limited Feedback in Organizations," Working Papers 490, Barcelona Graduate School of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:454. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.