The paper addresses the problem of optimally matching heterogeneous players in a two-stage two-type Lazear-Rosen tournament in which the semifinal losers are eliminated. The organizer of the tournament can either choose two homogeneous semifinals -- one between two strong players and the other...

Splitting leagues or tournaments seems to be puzzling when agents are homogeneous and splitting leads to a negative competition effect. However, it can be shown that the principal can nevertheless benefit from splitting. First, splitting can be used as a divide-and-rule strategy by the principal...

In practice, two types of tournaments can be distinguished - U-type and J-type tournaments. In U-type tournaments, workers receive prizes that have been fixed in advance. In J-type tournaments, the employer fixes an aggregate wage bill in advance, which is then shared among the workers according...