Template-Type: ReDIF-Paper 1.0
Author-Name:  Loukas Balafoutas
Author-Name-First: Loukas
Author-Name-Last: Balafoutas
Author-Email: Loukas.Balafoutas@uibk.ac.at
Author-Workplace-Name: University of Innsbruck
Author-Name:  Mongoljin Batsaikhan
Author-Name-First: Mongoljin
Author-Name-Last: Batsaikhan
Author-Email: mb1712@georgetown.edu
Author-Workplace-Name: Georgetown University in Qatar
Author-Name:  Matthias Sutter
Author-Name-First: Matthias
Author-Name-Last: Sutter
Author-Email: matthias.sutter@coll.mpg.de
Author-Workplace-Name: Max Planck Institute for Research on Collective Goods Bonn, University of Cologne, University of Innsbruck, and IZA Bonn

Title:   Competitiveness of Entrepreneurs and Salaried Workers
Abstract: We measure the willingness to compete of entrepreneurs and salaried workers in an experiment. We let participants choose between a piece-rate and a tournament scheme either in private or in public. We find that in the private condition entrepreneurs are less competitive than salaried workers, but that in the public condition this ordering is reversed. Data from a follow-up survey suggest that social image concerns of entrepreneurs and perceived norms can explain why entrepreneurs are more competitive when decisions are publicly observable. Our survey also reveals that more competitive entrepreneurs earn higher profits in their businesses. 
Length: 37 pages
Classification-JEL: C91, C93, D01, L26
Keywords: Competitiveness, Entrepreneurs, Salaried Workers, Profits, Field Behavior, Experiment

Creation-Date:  2021-03
File-URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_069_2021.pdf
File-Format: Application/pdf
File-Function: First version, 2021
Number: 069
Handle: RePEc:ajk:ajkdps:069