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Gender, Competition, and Managerial Decisions

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  • Curtis R. Price

    () (College of Business, University of Southern Indiana, Evansville, Indiana 47712)

Abstract

The purpose of this study is to investigate the use of competitive compensation between a manager and a worker in the laboratory. To this end, we impose a simple agency relationship between two groups of subjects termed managers and workers. The manager chooses a compensation scheme for the worker from either a piece rate or a tournament payment scheme and is paid based on the workers performance in the task. The results indicate that when given information about worker ability, male managers choose the tournament significantly less often for a female worker. On the other hand, when no information about worker ability is given to the manager, there is no difference in compensation choice for the worker, although male and female managers differ significantly in their own preferences for compensation scheme. We conjecture that these results are tied to the fact that there is a measurable stereotype that females are worse at the task relative to males, although further research is needed in this regard. This paper was accepted by Brad Barber, Teck Ho, and Terrance Odean, special issue editors.

Suggested Citation

  • Curtis R. Price, 2012. "Gender, Competition, and Managerial Decisions," Management Science, INFORMS, vol. 58(1), pages 114-122, January.
  • Handle: RePEc:inm:ormnsc:v:58:y:2012:i:1:p:114-122
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    File URL: http://dx.doi.org/10.1287/mnsc.1110.1384
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    References listed on IDEAS

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    Cited by:

    1. Curtis R. Price & Roman M. Sheremeta, 2015. "Endowment Origin, Demographic Effects, and Individual Preferences in Contests," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(3), pages 597-619, September.
    2. Dato, Simon & Nieken, Petra, 2014. "Gender differences in competition and sabotage," Journal of Economic Behavior & Organization, Elsevier, vol. 100(C), pages 64-80.
    3. Goodall, Amanda H. & Osterloh, Margit, 2015. "Women Have to Enter the Leadership Race to Win: Using Random Selection to Increase the Supply of Women into Senior Positions," IZA Discussion Papers 9331, Institute for the Study of Labor (IZA).
    4. Cadsby, C. Bram & Servátka, Maroš & Song, Fei, 2013. "How competitive are female professionals? A tale of identity conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 284-303.
    5. Perryman, Alexa A. & Fernando, Guy D. & Tripathy, Arindam, 2016. "Do gender differences persist? An examination of gender diversity on firm performance, risk, and executive compensation," Journal of Business Research, Elsevier, vol. 69(2), pages 579-586.
    6. Aurelie Dariel & Curtis Kephart & Nikos Nikiforakis & Christina Zenker, 2017. "Emirati women do not shy away from competition: evidence from a patriarchal society in transition," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 3(2), pages 121-136, December.
    7. repec:eee:crpeac:v:27:y:2015:i:c:p:177-188 is not listed on IDEAS

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