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The persistent effect of competition on prosociality

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  • Kosse, Fabian
  • Rajan, Ranjita
  • Tincani, Michela

Abstract

We present the first causal evidence on the persistent impact of enduring competition on prosociality. Inspired by the literature on tournaments within firms, which shows that competitive compensation schemes reduce cooperation in the short-run, we explore if enduring exposure to a competitive environment persistently attenuates prosociality. Based on a large-scale randomized intervention in the education context, we find lower levels of prosociality for students who just experienced a 2-year competition period. 4-year follow-up data indicate that the effect persists and generalizes, suggesting a change in traits and not only in behavior.

Suggested Citation

  • Kosse, Fabian & Rajan, Ranjita & Tincani, Michela, 2023. "The persistent effect of competition on prosociality," CEPR Discussion Papers 18615, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:18615
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    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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