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Multi-dimensional status competition and group performance

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We build a dynamic simulation model of an organizational group where members collectively produce an output. In addition to compensation, group members value a high status relative to their peers, which can be achieved by non-productive, social activities of status enhancement. Group members allocate their total time between working and non-productive status enhancement, trying to maximize the combined utility from compensation and status rank. Often, several dimensions exist along which group members evaluate their status. It has not been explored whether multiple dimensions exacerbate status competition or mitigate it, as individuals can choose dimensions along which they look good, which relieves them of the need to constantly assert temselves. Via analytical model and simulation, we show that status competition becomes worse when several status dimensions are present.

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