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Competition and Well-Being

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Author Info
Jordi Brandts () (Institut d'Anàlisi Econòmica (CSIC), Barcelona)
Arno Riedl () (University of Maastricht and IZA Bonn)
Frans van Winden () (Tinbergen Institute and University of Amsterdam)

Additional information is available for the following registered author(s):

Abstract

This paper experimentally studies the effects of competition in an environment where people's actions can not be contractually fixed. We find that, in comparison with no competition, the presence of competition does neither increase efficiency nor does it yield any gains in earnings for the short side of the exchange relation. Moreover, competition has a clearly negative impact on the disposition towards others and on the experienced well-being of those on the long side. Since subjective well-being improves only for those on the short side competition contributes to larger inequalities in experienced well-being. All in all competition does not show up as a positive force in our environment.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1769.

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Length: 54 pages
Date of creation: Sep 2005
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Handle: RePEc:iza:izadps:dp1769

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Related research
Keywords: competition happiness well-being laboratory experiment emotions market interaction

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Find related papers by JEL classification:
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
D30 - Microeconomics - - Distribution - - - General
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General

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Cited by:
(explanations, 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.)

  1. Brian Roe & Steven Y. Wu, 2005. "Social Preferences and Relational Contracting Performance: An Experimental Investigation," Microeconomics 0509006, EconWPA. [Downloadable!]
  2. Rode, Julian, 2007. "Truth and Trust in Communication: An Experimental Study of Behavior under Asymmetric Information," Ratio Working Papers 111, The Ratio Institute. [Downloadable!]
  3. Frans van Winden & Mirre Stallen & K. Richard Ridderinkhof, 2008. "On the Nature, Modeling, and Neural Bases of Social Ties," Tinbergen Institute Discussion Papers 08-063/1, Tinbergen Institute. [Downloadable!]
  4. Rode, Julian, 2008. "Truth and trust in communication - Experiments on the effect of a competitive context," Sonderforschungsbereich 504 Publications 08-04, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
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