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Angelova, Vera; Giebe, Thomas and Ivanova-Stenzel, Radosveta (2017): Does a Short-Term Increase in Incentives Boost Performance? Collaborative Research Center Transregio 190, Discussion Paper No. 60 [PDF, 389kB]


If agents are exposed to continual competitive pressure, how does a short-term variation of the severity of the competition affect agents' performance? In a real-effort laboratory experiment, we study a one-time increase in incentives in a sequence of equally incentivized contests. Our results suggest that a short-term increase in incentives induces a behavioral response but does not boost total performance.

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