Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2004-04-19
Number: 04-041/1
Author-Name: Jordi Brandts
Author-Workplace-Name: Institut d'Análisi Económica (CSIC), Barcelona
Author-Name: Arno Riedl
Author-Email: a.m.riedl@uva.nl
Author-Workplace-Name: CREED, Faculty of Economics and Econometrics, Universiteit van Amsterdam
Author-Name: Frans van Winden
Author-Email: f.a.a.m.vanwinden@uva.nl
Author-Workplace-Name: CREED, Faculty of Economics and Econometrics, Universiteit van Amsterdam
Title: Competition and Well-Being
Abstract: We study the effects of competition in a context in which people's actions can not be contractually fixed. We find that in such an environment the very presence of competition does neither increase efficiency nor does it yield any payoff gains for the short side of the market. We also find that competition has a strong negative impact on social well-being, the disposition towards others, and individually experienced well-being, the emotional state, of those on the long side of the market. We conjecture that this limits the possibilities of satisfactory interaction in the future and, hence, has negative implications for efficiency in the longer-run.
Classification-JEL: A13; C92; D30; J50; M50
Keywords: competition; happiness; well-being; laboratory experiment; emotions; market interaction
File-Url: https://papers.tinbergen.nl/04041.pdf
File-Format: application/pdf
File-Size: 379755 bytes
Handle: RePEc:tin:wpaper:20040041