Success breeds successor Pride goes before a fall?1 Teams and Individuals in Best-of-Three Contests
نویسندگان
چکیده
We study the impact of progress feedback in team-production contests, in which each team member is solely responsible for one part of the production task. Particularly, we employ a real-e¤ort laboratory experiment to examine how team members react to the feedback in team-based (best-ofthree) contests and whether it di¤ers from that of individual-based (best-ofthree) contests. Our data corroborate the theoretical prediction for teams: Neither a lead nor a lag in the rst period a¤ects a teams performance in the subsequent period. In individual contests, however, contrary to the theoretical prediction, we observe that leaders perform worse, but laggards perform better, after learning the outcome of the rst period. Our ndings o¤er new insights on team incentives in competition, and highlight the importance of incorporating contest structure into the design of feedback mechanisms in organizational management. JEL codes: D72; D74; C91
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