nep-spo New Economics Papers
on Sports and Economics
Issue of 2006‒01‒29
one paper chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Relative Income Position And Performance: An Empirical Panel Analysis By Benno Torgler; Sascha L. Schmidt; Bruno S. Frey

  1. By: Benno Torgler; Sascha L. Schmidt; Bruno S. Frey
    Abstract: studies have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. However, behavioral evidence is rare. This paper provides an empirical analysis on how individuals’ relative income position affects their performance. Using a unique data set for 1114 soccer players over a period of eight seasons (2833 observations), our analysis suggests that the larger the income differences within a team, the worse the performance of the soccer players is. The more the players are integrated in a particular social environment (their team), the more evident this negative effect is.
    Keywords: Relative income, positional concerns, envy, performance, social integration
    JEL: D00 D60 L83
    Date: 2006–01
    URL: http://d.repec.org/n?u=RePEc:zur:iewwpx:268&r=spo

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