Yugoslavia laid the legal foundations for capital investments by foreign firms in 1967. It was the first socialist country to permit foreign investments and apart from Roumania and Hungary is still the only one which has done so. Prerequisites have thereby been provided for very close relations...

In many environments, tournaments can elicit more effort from workers, except perhaps when workers can sabotage each other. Because it is hard to separate effort, ability and output in many real workplace settings, the empirical evidence on the incentive effect of tournaments is thin. There is...

The Peter Principle states that, after a promotion, the observed output of promoted employees tends to fall. Lazear (2004) models this principle as resulting from a regression to the mean of the transitory component of ability. Our experiment reproduces this model in the laboratory by means of...