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This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents, who have private information on their productivity. Two vertically differentiated firms compete for agents by offering contracts...
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provides incentives to increase effort in order to reach the playoffs and incentives to decrease effort once a team has been … incentives - they win more games when there is still a chance to reach the playoffs and lose more after being eliminated from …
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