Working Paper

The Persistent Effect of Competition on Prosociality

Fabian Kosse, Ranjita Rajan, Michela Tincani
CESifo, Munich, 2023

CESifo Working Paper No. 10779

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.

CESifo Category
Economics of Education
Behavioural Economics
Keywords: prosociality, competition, cooperation, social skills, socio-emotional skills, tournaments, comparative pay, incentive schemes
JEL Classification: D640, C900