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Peer Competition: Evidence from 5- to 95-Year-olds

Author

Listed:
  • Jose De Sousa

    (U. Paris-Saclay, RITM and Sciences Po, Liepp)

  • Benoit Schmutz

    (Ecole Polytechnique and CREST)

Abstract

Good peers may help you learn, but they may also steal your spotlight. We use the panel of chess players in the French club championship to document this trade-off. With an instrumental variable strategy based on club closures, we show that better clubmates help players improve, but only when they do not monopolize the (good) opportunities to play. For players at the bottom of the club distribution, positive externalities are offset by competition. Junior players, who enjoy a steep learning curve, suffer more from peer competition in the short-run, but they may also reap higher benefits in the long-run.

Suggested Citation

  • Jose De Sousa & Benoit Schmutz, 2022. "Peer Competition: Evidence from 5- to 95-Year-olds," Working Papers 2022-04, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2022-04
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    References listed on IDEAS

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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