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Competitive Preferences and Status as an Incentive: Experimental Evidence

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Listed:
  • Charness, Gary

    (University of California, Santa Barbara)

  • Masclet, David

    (University of Rennes)

  • Villeval, Marie Claire

    (CNRS, GATE)

Abstract

In this paper, we investigate individuals' investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their status (rank). We find that people express both intrinsic motivation and a taste for status. Indeed, people increase their effort when they are simply informed about their relative performance, and people pay both to sabotage others’ output and to artificially increase their own relative performance. In addition, stronger group identity favors positive rivalry and discourages sabotage among peers.

Suggested Citation

  • Charness, Gary & Masclet, David & Villeval, Marie Claire, 2010. "Competitive Preferences and Status as an Incentive: Experimental Evidence," IZA Discussion Papers 5034, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5034
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    References listed on IDEAS

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    1. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
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    More about this item

    Keywords

    experiment; competitive preferences; status seeking; rank;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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