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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 …
Persistent link: https://www.econbiz.de/10013029381
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 …
Persistent link: https://www.econbiz.de/10012970700
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 …
Persistent link: https://www.econbiz.de/10010411960
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 …
Persistent link: https://www.econbiz.de/10011498942
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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 …
Persistent link: https://www.econbiz.de/10011844573
aggregate incentives. We derive the optimal information design for a designer interested in the maximization of aggregate effort …
Persistent link: https://www.econbiz.de/10012318681
We study signaling in dynamic contests with heterogeneous players. A privately-informed challenger faces a sequence of rivals of known types. The type of future rivals determines which signal the challenger wants to produce, whereas the strategic response of current rivals determines the extent...
Persistent link: https://www.econbiz.de/10013292789
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