Group size matters: Synergistic effects and reduced inequality in performance rankings

Abstract

Contemporary society often employs ranking systems to evaluate and reward individual performances based on meritocratic principles. However, these systems can have unintended consequences, impacting creativity and equality. This study presents a statistical analysis of a ranking performance model to examine the implications of these systems on social dynamics. Using a simulation approach, we explore the role of imitation in determining individuals’ success and how these dynamics influence overall group productivity and inequality. Our results unveil a synergistic effect of increasing group size and enhancing collective output while reducing individual performance inequality. Additionally, we investigate the social dynamics on random graphs, scale-free, and small-world networks to understand the influence of network topology, showing that connectivity within the group significantly influences both performance and inequality. Our results also demonstrate that high clustering combined with short path lengths reduces inequalities. These findings provide insights into optimizing ranking systems to balance merit-based recognition with the need for innovation and equality, suggesting strategies to enhance group synergy.