2009
DOI: 10.2139/ssrn.1346472
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Tournaments Without Prizes: Evidence from Personnel Records

Abstract: We use a quasi-experimental research design to study the introduction of a relative performance evaluation without introducing relative performance pay. The setting is a firm in which workers are paid piece rates and where, at some point, management begins to reveal to workers their relative position in the distribution of pay and productivity. We find that merely providing this information leads to a large and permanent increase in productivity that is costless to the firm. Our findings are consistent with th… Show more

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Cited by 28 publications
(11 citation statements)
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References 31 publications
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“…A large part of this volatility is caused by common shocks (weather, holidays, advertising campaigns on national television, etc. ), 6 which renders an overview of all the events related to the experiment. In the first experimental period, all stores were assigned to one of the two experimental treatments, either bonus or feedback.…”
Section: Experimental Set-up and Data Descriptionmentioning
confidence: 99%
“…A large part of this volatility is caused by common shocks (weather, holidays, advertising campaigns on national television, etc. ), 6 which renders an overview of all the events related to the experiment. In the first experimental period, all stores were assigned to one of the two experimental treatments, either bonus or feedback.…”
Section: Experimental Set-up and Data Descriptionmentioning
confidence: 99%
“…Under flat‐rate incentives, Mas and Moretti () find that there are positive productivity spillovers from the introduction of highly productive personnel into a shift. Blanesi Vidal and Nossol (), by using a firm level data set find that individual disclosure of relative standing increased long term average productivity by about 6% without affecting the quality of production.…”
mentioning
confidence: 94%
“…The choice of incentive schemes is guided by rank incentives and tournaments being widely used to provide incentives in organizations, and yet field evidence on their effects is scarce . Theory highlights how rank incentives can affect productivity if individuals have status concerns (Moldovanu, Sela, and Shi, ; Besley and Ghatak, ), and a small empirical literature shows that providing information on rankings without prizes impacts productivity when individuals work independently (Barankay, ; Delfgaauw et al., ; Clark, Masclet, and Villeval, ; Blanes i Vidal and Nossol, ; Kosfeld and Neckermann, ). To the best of our knowledge, ours is the first field experiment designed to evaluate the effect of rank incentives on team composition and productivity in a real workplace.…”
Section: Introductionmentioning
confidence: 99%