Relative Feedback Response in Competitive Environments

Relative performance feedback is common in competitive environments. Such feedback, especially when it is negative, is more likely to affect beliefs in women (Roberts and Nolen-Hoeksema, 1989). We investigate the effect of relative performance feedback on subsequent performance in a winner-take-all environment. We find that feedback slightly reduces the performance of men. Women, on the other hand, respond to negative feedback by increasing their subsequent performance, even when doing so is unlikely to affect the likelihood of winning.