Casas-Arce, Pablo; Martínez-Jerez, F. Asís - In: Management Science 55 (2009) 8, pp. 1306-1320
Contests (or tournaments) are pervasive in organizations. They help performance evaluation by eliminating common shocks affecting agents' performance. However, tournaments are less effective when participants have heterogeneous ability because participants may conclude that the ability gap is...