competition and lower efficiency. We report an experiment in which two groups compete in a weakest-link contest by expending … both groups leads to even more aggressive competition and the lowest payoffs to both groups. Despite such a “harmful …

Within-group communication in competitive coordination games has been shown to increase competition between groups and … communication, it leads to more aggressive competition and lower efficiency relative to the case when neither group can communicate …

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a …-dependent exit options for agents. In contrast to screening models with perfect competition, we find that existence of equilibria … that the efficiency of variable pay depends on the degree of competition for agents: For small degrees of competition, low …

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a … high degrees of vertical differentiation, i.e. low competition, low-ability agents are under-incentivized and exert too … little effort. For high degrees of competition, high-ability agents are over-incentivized and bear too much risk. For a range …

Incentives based on esteem, honor and shame are increasingly popular and easy to use due to modern surveillance … Tirole (2011) to explore the effect of esteem-based incentives and their interaction with traditional monetary incentives. We … show that esteem-based incentives can indeed lead to a loss of control by generating multiple equilibria, some of which …

aggregate incentives. We derive the optimal information design for a designer interested in the maximization of aggregate effort …