According to the well-established tournament literature, incomplete information regarding employees’ productivity is essential for the rationalization of (efficiency-enhancing) tournaments. In this Paper we propose an alternative rationalization of tournaments focusing on a fully informed...

In this paper we study the endogenous determination of minimum wage employing a political-economic game-theoretic approach. A major objective of the paper is to clarify the crucial role of the strength of the workers' union and of political culture on the determination of the minimum wage. In...