Professor Michael Roberto’s Blog: Feedback’s Impact on Innovation: A Key Tradeoff

First, not surprisingly, feedback does improve the quality of subsequent work.   However, feedback also discourages future participation.  People who receive low ratings in the initial round are less likely to continue in the contest.   “A majority of players (69.5%) whose first rating is the lowest possible rating will subsequently stop investing in the contest.”  That’s not necessarily a bad thing.  Weeding out low performers can be efficient.  However, Gross finds that the detrimental impact on participation is NOT exclusive to individuals who receive negative feedback initially.

Source: Professor Michael Roberto’s Blog: Feedback’s Impact on Innovation: A Key Tradeoff