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The Dark Side of Competition for Status

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  • Charness, Gary
  • Masclet, David
  • Villeval, Marie Claire

Abstract

Unethical behavior within companies is not rare. We investigate experimentally therole of status-seeking behavior in sabotage and cheating activities aiming at improving one’sperformance ranking in a flat-wage environment. We find that average effort is higher whenindividuals are informed about their relative performance. However, ranking feedback alsofavors disreputable behavior. Some individuals do not hesitate to incur a cost to improve theirrank by sabotaging others’ work or by increasing artificially their own performance. Introducingsabotage opportunities has a strong detrimental effect on performance. Therefore, rankingincentives should be used with care. Inducing group identity discourages sabotage among peersbut increases in-group rivalry.

Suggested Citation

  • Charness, Gary & Masclet, David & Villeval, Marie Claire, 2012. "The Dark Side of Competition for Status," University of California at Santa Barbara, Economics Working Paper Series qt1vr4g446, Department of Economics, UC Santa Barbara.
    • Handle: RePEc:cdl:ucsbec:qt1vr4g446
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    2. Christiane Bradler & Robert Dur & Susanne Neckermann & Arjan Non, 2013. "Employee Recognition and Performance: A Field Experiment," Tinbergen Institute Discussion Papers 13-038/VII, Tinbergen Institute.
    3. J. Atsu Amegashie, 2013. "Sabotage in Contests: An Overview," CESifo Working Paper Series 4422, CESifo.

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