Rivals without a cause? Relative performance feedback creates destructive competition despite aligned incentives

Whether people compete or cooperate with each other has consequences for their own performance and that of organizations. To explain why people compete or cooperate, previous research has focused on two main factors: situational outcome structures and personality types. Here, we propose that—above and beyond these two factors—situational cues, such as the format in which people receive feedback, strongly affect whether they act competitively, cooperatively, or individualistically. Results of a laboratory experiment support our theorizing: After receiving ranking feedback, both students and experienced managers treated group situations with cooperative outcome structures as competitive and were in consequence willing to forgo guaranteed financial gains to pursue a—financially irrelevant—better rank. Conversely, in dilemma situations, feedback based on the joint group outcome led to more cooperation than ranking feedback. Our study contributes to research on competition, cooperation, interdependence theory, forced ranking, and the design of information environments.     

Hierarchical classes: Model and data analysis

A discrete, categorical model and a corresponding data-analysis method are presented for two-way two-mode (objects × attributes) data arrays with 0, 1 entries. The model contains the following two basic components: a set-theoretical formulation of the relations among objects and attributes; a Boolean decomposition of the matrix. The set-theoretical formulation defines a subset of the possible decompositions as consistent with it. A general method for graphically representing the set-theoretical decomposition is described. The data-analysis algorithm, dubbed HICLAS, aims at recovering the underlying structure in a data matrix by minimizing the discrepancies between the data and the recovered structure. HICLAS is evaluated with a simulation study and two empirical applications.This research was supported in part by a grant from the Belgian NSF (NFWO) to Paul De Boeck and in part by NSF Grant BNS-83-01027 to Seymour Rosenberg. We thank Iven Van Mechelen for clarifying several aspects of the Boolean algebraic formulation of the model and Phipps Arabie for his comments on an earlier draft.