Leuven, Edwin; Oosterbeek, Hessel; van der Klaauw, Bas - C.E.P.R. Discussion Papers - 2010
high-prize tournament, while low-ability agents compete for the low prize. However, there are also equilibria in which … agents follow a mixed strategy and there can be reverse sorting, i.e. low-ability agents are in the tournament with the high … prize, while high-ability agents are in the low-prize tournament. We show that total effort always decreases compared to a …