minimization, we are able to show that premium incentives outperform fixed-prize tournaments as well as piece rates. Our …Tournaments represent an increasingly important component of organizational compensation systems. While prior research … focused on fixed-prize tournaments, i.e., on tournaments where the prize or prize sum to be awarded is set in advance, we …

distributions are uncertain, models of ambiguity aversion suggest that tournaments may become more attractive than independent wage … tournaments and independent contracts, which are designed in a way that under uncertainty about output distribution (that is …, under ambiguity), ambiguity averse agents should typically prefer tournaments, while ambiguity neutral agents prefer …

a number-adding task) with the same treatments. In all tasks we find that incentives seem to have very small effects and …

tournaments, greater uncertainty does indeed lead to greater than expected effort and lower unit variable costs. …