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Interdependency in Performance

Author

Listed:
  • Haraguchi, Kelii H.

    (University of Oregon)

  • Waddell, Glen R.

    (University of Oregon)

Abstract

We empirically model performance in the final round of a multiple-round tournament as a spatially autoregressive process, allowing us to sign and quantify the endogenous interactions between competitors. Doing so speaks to significant regularities in the data that suggest that a player’s own performance generally tends to improve with the improving performance of competitors. However, we also find significant asymmetries in the interdependency of player performance that suggest that social interactions, even those found in a fairly straightforward game, can be rather complex. For example, while the positive complementarity in performance is particularly strong between tied players, own performance suffers in response to improving performance of lagging, lower-ability competitors.

Suggested Citation

  • Haraguchi, Kelii H. & Waddell, Glen R., 2007. "Interdependency in Performance," IZA Discussion Papers 2944, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2944
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    Cited by:

    1. Eriksson, Tor & Poulsen, Anders & Villeval, Marie Claire, 2009. "Feedback and incentives: Experimental evidence," Labour Economics, Elsevier, vol. 16(6), pages 679-688, December.
    2. Rosaz, Julie & Slonim, Robert & Villeval, Marie Claire, 2016. "Quitting and peer effects at work," Labour Economics, Elsevier, vol. 39(C), pages 55-67.

    More about this item

    Keywords

    peer effects; tournament; spatial; best response;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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