Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms

Knauer T, Sommer F, Wöhrmann A (2017)


Publication Type: Journal article

Publication year: 2017

Journal

Book Volume: 26

Pages Range: 681-702

Journal Issue: 4

DOI: 10.1080/09638180.2016.1175957

Abstract

This study investigates the effects of the psychological mechanisms activated by different proportions of tournament winners on effort. Using a real-effort experiment that allows the evolution of social comparison, which is central to our theory, we show that firms can increase employee effort (and performance) by increasing the proportion of winners. Based on a causal model, we generate evidence for our theory that this effect is driven by relative performance concerns and bonus concerns, both of which depend on the proportion of tournament winners. In addition, we find that, over time, the change in effort is more negative the lower the proportion of winners. This effect is driven by the different behaviors of winners and losers in a previous tournament.

Involved external institutions

How to cite

APA:

Knauer, T., Sommer, F., & Wöhrmann, A. (2017). Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms. European Accounting Review, 26(4), 681-702. https://doi.org/10.1080/09638180.2016.1175957

MLA:

Knauer, Thorsten, Friedrich Sommer, and Arnt Wöhrmann. "Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms." European Accounting Review 26.4 (2017): 681-702.

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