We develop a product market theory that explains why firms invest in general training of their workers. We consider a …

This paper tests two hypotheses from the theory of elimination tournaments: (i) that uneven tournaments, where the … contestants are ex ante heterogeneous, entail lower effort exertion; this is a prediction from agency theory that has not been … underlies any agency theory about elimination tournaments, and has been empirically tested in other contexts. The evidence …

than purely self-interested agents for a given prize structure. Contrary to standard tournament theory first-best efforts …

such doping or cheating within a tournament game between two heterogeneous players. Three major effects are identified …

sequential tournament, under certain conditions the first acting agent chooses a preemptively high effort so that the following …

learn the abilities of agents. Theory suggests high first-period equilibrium effort in the hidden ability treatment but no …

of the typical American firm. Variable pay is usually touted as a way to provide incentives to managers whose interests … received much attention, but is consistent with many of the facts, is selection. Managers and industry specialists may have … information about a firm?s prospects that is unavailable to outside investors. In order to induce managers to be truthful about …