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Small ponds are best to motivate performance with relative feedback

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  • Lou, Hanlin
  • Page, Lionel
  • Xu, Hui

Abstract

Providing feedback on performance relative to a comparison group is a common approach to foster motivation and enhance later performance. In this study, we investigate how the comparison group for such feedback should be chosen. We show in a field experiment taking place in a high school in China that relative performance feedback has a greater positive effect on performance when the comparison group is small than when it is large. We argue that a likely explanation is that the first and last places in a ranking can act as reference points. In small groups, participants’ ranks tend to be closer to these extreme ranks leading to a greater motivation to increase performance in order to reach the first place or avoid the last place.

Suggested Citation

  • Lou, Hanlin & Page, Lionel & Xu, Hui, 2025. "Small ponds are best to motivate performance with relative feedback," Journal of Economic Behavior & Organization, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:jeborg:v:240:y:2025:i:c:s0167268125004330
    DOI: 10.1016/j.jebo.2025.107316
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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