Co-workers trust and intense competition

A competitive market encourages trust among co-workers, new study

Published: 15:18, September 20, 2018

Co-workers in a competitive market trust each other more than those in a non-competitive market, a new study found. In other words, working in a competitive industry generates a greater level of trust among workers in the same company. This is what researchers from Aix-Marseille University, Princeton University, and the University of British Columbia found.

They wrote about their study and findings in the journal Science Advances (citation below).

The researchers gathered and analyzed data from both Germany and the US across several manufacturing industries. They suggest that the more competitive an industry is, the more pro-social the behaviors of co-workers are. Sharing, volunteering, and cooperation, for example, are pro-social behaviors.

Trust among co-workers in competitive markets

Co-author Patrick Francois said:

“In competitive markets, employers unable to elicit such cooperative behavior are likely to be out-competed by those that are more successful in doing so. Pro-social behavior from employees makes them more productive, which is good for business.”

Francois is a Professor at the Vancouver School of Economics at the University of British Columbia (UBC) in Canada. He is also a Senior Fellow of the Institutions, Organizations, and Growth program of the Canadian Institute for Advanced Research.

The other two co-authors were Thomas Fujiwara and Tanguy van Ypsersele. Thomas Fujiwara is an Assistant Professor of Economics at Princeton University’s Department of Economics in the US. Tanguy van Ypersele is a Professor at Aix-Marseille University’s Faculty of Economics and Management in France.

Co-workers trust each other more when markets are competitive
In the journal article, the authors wrote: “Increased competition across firms exposes subjects to increased group beneficial behavior on the part of their co-workers and increases their own such behavior.” (Image: economics.ubc.ca)

Laboratory experiment

The researchers carried out a laboratory experiment which replicated industry data in a controlled environment. Participants had to play a public goods game, which is a standard of experimental economics.

In this game, participants decide secretly whether to make a financial contribution to a collective pool. If they don’t give the money, they keep it for themselves.

The study participants had to play the game twice. The first time, they played it in the traditional way. When they played the second time, on the other hand, the researchers manipulated the degree of competition across the groups.

The researchers wanted the experiment to mimic what happens in real life. In other words, they wanted the variation of competition that exists in the marketplace. In this context, the term ‘marketplace’ means the same as ‘market’ in the abstract sense of the word.

Therefore, study participants might be co-workers in more competitive or less competitive markets.

There was more pro-social behavior in the participants who played in the more competitive version of the game. In other words, in this simulation, pretend co-workers in a competitive industry had more pro-social behaviors than their counterparts in a less competitive industry.

What they saw in the experiment matched what they had observed in the German and US data.

The authors said that we still have a poor understanding of the origins of pro-social behavior among humans. However, they point to competition across companies as a potential factor supporting cultural evolution.

Citation

“The origins of human prosociality: Cultural group selection in the workplace and the laboratory,” Patrick Francois, Thomas Fujiwara, and Tanguy van Ypersele. Science Advances, 19 Sep 2018: Vol. 4, no. 9, eaat2201.
DOI: 10.1126/sciadv.aat2201.

Christian Nordqvist Avatar

Other News

Product reviews can influence how shoppers assess environmental claims

Nov 3, 2026

Discounts for infrequent buyers can affect how regular customers feel

Nov 3, 2026

Sponsored post frequency has an uneven relationship with influencer engagement

Nov 3, 2026

Regular giving can affect how customers view corporate donations, study finds

Nov 2, 2026

How describing the same food as having few ingredients can change interest

Nov 2, 2026

Suggested prices can change what marketplace sellers earn, Mercari experiment finds

Nov 2, 2026

A change of month can make a sale feel farther away, marketing study suggests

Nov 2, 2026

New and established brands drew different responses to advertising appeals in study

Nov 2, 2026

Community promotions gave lesser-known authors a sales lift in Quebec study

Nov 2, 2026

Believable price guarantees linked to greater trust in retailer survey

Nov 1, 2026

Where customers receive free samples can affect what they do next

Nov 1, 2026

Branded search ads showed no clear sales lift in small business tests

Nov 1, 2026

Tokenized markets promise faster trades, but legal rights and liquidity remain unresolved

Nov 1, 2026

Internet coverage alone cannot close the digital divide, World Bank says

Nov 1, 2026

Energy upgrades can save businesses money, but financing the work remains a hurdle

Nov 1, 2026

Why tighter credit can disrupt supply chains before orders disappear

Oct 31, 2026

South Africa plans a more open payments system as digital transactions grow

Oct 31, 2026

African cities face a jobs test as urban populations grow

Oct 31, 2026

Online platforms can open foreign markets, but sellers still face costs

Oct 31, 2026

Trade barriers beyond tariffs can keep Balkan exporters from growing

Oct 31, 2026