In a laboratory experiment I investigate the role of perceived own ability in a multi-task setting with career concerns under fixed wages and under financial incentives with a higher weight on the task measured with noise. I find that in the absence of career concerns participants allocate...

We investigate the consequences for losing competitors following the end of a promotion tournament. We examine CEO tournaments and find that the total incentives of non-promoted executives (NPEs) are likely to decrease significantly at the end of a tournament based on evidence of their lower...

It is difficult to test the prediction that future career prospects create implicit effort incentives because researchers cannot randomly “assign” career prospects to economic agents. To overcome this challenge, we use data from professional soccer, where employees of the same club face...

Promotions serve two purposes. They ought to provide incentives for employees and to select the best employee for a management position. However, if non-contractible managerial decision rights give rise to private benefits and preference misalignment between managers and the firm, these two...