Friday meeting - Emanuela Lezzi (Bournemouth University)

"Fairness, Expectations and Sabotage: An Experiment on Tournaments"
Quand ? Le 24-03-2017,
de 10:30 à 12:00
Où ? ISEM - Salle SCI
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24 mars 2017 - 
Salle SCI ISEM – 10:30-12:00
Friday Meeting - Emanuela Lezzi (Bournemouth University)
Title: Fairness, Expectations and Sabotage: An Experiment on Tournaments
Abstract: We analysed the effects of three types of allocation rules of monetary rewards on individuals' decisions of investment and sabotage in tournaments.We conducted an experiment where participants were initially asked to perform a real effort task. At the end of the real effort task their performance was ranked. They were then asked to enter a 2-player prize competition. Each pair consisted of a High Type participant, who performed better the real effort task, and a Low Type participant, who performed worse the real effort task. Subjects received feedback on their performance rank and their opponents' performance rank. They were also informed about the allocation of a monetary reward: in one treatment High Type participants were rewarded, in a second treatment the Low Type subjects received the reward, and finally in a control treatment, the bonus was randomly assigned to either a High Type or a Low Type subject. Hence, subjects were asked to choose their level of investment. They could also sabotage their opponents' level of investment and therefore their opponents' probability to win the prize. Results show that non-random allocation rules of the bonus reduce investments overall, that participants that receive the bonus are less likely both to invest and sabotage, and that Low type participants are more willing to sabotage when they receive the bonus based on an unfair procedure and, therefore, they expect to be victim of sabotage.