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The Efficacy of Tournaments for Non-Routine Team Tasks

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Listed:
  • Florian Englmaier
  • Stefan Grimm
  • Dominik Grothe
  • David Schindler
  • Simeon Schudy

Abstract

Tournaments are often used to improve performance in innovation contexts. Tournaments provide monetary incentives but also render teams’ identity and social-image concerns salient. We study the effects of tournaments on team performance in a non-routine task and identify the importance of these behavioral aspects. In a natural field experiment (n>1,700 participants), we vary the salience of team identity, social-image concerns, and whether teams face monetary incentives. Increased salience of team identity does not improve performance. Social-image motivates mainly the top-performing teams. Additional monetary incentives improve all teams’ outcomes without crowding out teams’ willingness to explore or perform similar tasks again.

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  • Florian Englmaier & Stefan Grimm & Dominik Grothe & David Schindler & Simeon Schudy, 2021. "The Efficacy of Tournaments for Non-Routine Team Tasks," CESifo Working Paper Series 9189, CESifo.
    • Handle: RePEc:ces:ceswps:_9189
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    1. Timm Opitz, 2024. "Interpersonal Preferences and Team Performance: The Role of Liking in Complex Problem Solving," Rationality and Competition Discussion Paper Series 492, CRC TRR 190 Rationality and Competition.
    2. Florian Englmaier & Stefan Grimm & Dominik Grothe & David Schindler & Simeon Schudy, 2021. "The Value of Leadership: Evidence from a Large-Scale Field Experiment," CESifo Working Paper Series 9273, CESifo.

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    More about this item

    Keywords

    team-work; tournaments; rankings; incentives; identity; image concerns; innovation; exploration; natural field experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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