Killer Incentives: Rivalry, Performance and Risk-Taking among German Fighter Pilots, 1939-45 Philipp Ager Leonardo Bursztyn* Lukas Leucht Hans-Joachim Voth University of Southern University of Chicago UC Berkeley Haas University of Zurich Denmark & CEPR & NBER School of Business & CEPR Abstract. Using newly-collected data on death rates and aerial victories of more than 5,000 German fighter pilots during World War II, we examine the effects of public recognition on performance and risk-taking. When a particular pilot is honored publicly, both the victory rate and the death rate of his former peers increase. Fellow pilots react more if they come from the same region of Germany, or if they worked closely with him. Our results suggest that personal rivalry can be a prime motivating force, and that non-financial rewards can lead to a crowd-in of both effort and risk- taking via social connections. Keywords: Non-financial rewards, rivalry, status competition, World War II. * Corresponding author (
[email protected]). For helpful comments we thank the Editor (Adam Szeidl), five anonymous referees, Chris Blattman, Karol Borowiecki, Thomas Dohmen, Ruben Durante, Armin Falk, Ernst Fehr, Raquel Fernandez, Bruno Frey, Mitch Hoffman, Jonathan Leonard, Adriana Lleras-Muney, Ricardo Perez-Truglia, Luigi Pascali, Michael Peters, Konrad Raff, Gautam Rao, Debraj Ray, David Stasavage, Noam Yuchtman, as well as seminar audiences at the AEA meetings, Academy of Behavioral Economics, Bonn, Harvard, NBER Summer Institute, NYU, Northwestern, Stanford, UC Berkeley, UC Berkeley Haas, UCLA, Southern Denmark, and Zurich. We are indebted to Veit Scherzer for help with German World War II data, to Iftach Spector and Zeev Raz of the IDF for insightful discussions, and to Jim Perry, Tony Wood, and Johannes Mathews for sharing their data.