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.     

Cance and luck are not the same

In the mind of many people chance and luck act as real but different causes of events. Even in strictly defined situations as casino gambling, people may perceive influences of luck that help to overcome the negative expectancy defined by the rules of chance. Interviews with gamblers in casinos confirmed this idea. In two experiments it was established that the distinction between chance and luck are also made by ordinary subjects in everyday situations. The results revealed that chance is perceived to operate when an event is surprising, an unexpected coincidence. Luck is perceived when an event implies the escape from negative consequences, or the achievement of something that is important and difficult. The distinction between chance and luck can explain why people are trapped by the illusion of control, even when it is clear that they have no influence on the physical causation determining the outcomes of events. They cannot change the outcome of the roulette wheel, but they can employ their luck, which helps them to place their bets on the winning number.     

Imputation of missing categorical data by maximizing internal consistency

This paper suggests a method to supplant missing categorical data by reasonable replacements. These replacements will maximize the consistency of the completed data as measured by Guttman's squared correlation ratio. The text outlines a solution of the optimization problem, describes relationships with the relevant psychometric theory, and studies some properties of the method in detail. The main result is that the average correlation should be at least 0.50 before the method becomes practical. At that point, the technique gives reasonable results up to 10–15% missing data.We thank Anneke Bloemhoff of NIPG-TNO for compiling and making the Dutch Life Style Survey data available to use, and Chantal Houée and Thérèse Bardaine, IUT, Vannes, France, exchange students under the COMETT program of the EC, for computational assistance. We also thank Donald Rubin, the Editors and several anonymous reviewers for constructive suggestions.