Sutter, Matthias - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2004
We present a model where compensation within a workteam is determinedendogenously by the use of a rank-order tournament. Team memberscompete in their efforts for the right to propose the distribution of a prizewithin the team. The implementation of a proposal requires the approvalof other team...