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processes and the inherent variability of competitors' effort choices introduce uncertainty to tournament settings with respect … uncertainty leads to more excess of effort if compared to optimality (Avrahami et al., 2007). This paper experimentally … responses, and mainly overestimate their opponents. Leveling uncertainty influences both overshooting and the precision of …
Persistent link: https://www.econbiz.de/10010263891
depends stochastically on (constant) effort, the number of times that are checked to assign the bonus affects the level of un-certainty … in the selection process. Uncertainty, in turn, is expected to increase the efforts made by competing agents (Cowen and … of uncertainty (sampling occasions of productions, 1 or 3), cost of production (high or low), cost symmetry (asymmetric …
Persistent link: https://www.econbiz.de/10010263840
We use experiments to test comparative statics predictions of canonical tournament theory. Both the roles of principal and agent are populated by human subjects, allowing us to test predictions for both incentive responses and optimal tournament design. Consistent with theory, we observed an...
Persistent link: https://www.econbiz.de/10013112121
We use experiments to test comparative statics predictions of canonical tournament theory. Both the roles of principal and agent are populated by human subjects, allowing us to test predictions for both incentive responses and optimal tournament design. Consistent with theory, we observed an...
Persistent link: https://www.econbiz.de/10013111204
environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature …
Persistent link: https://www.econbiz.de/10010365868
Traditionally, researchers have had difficulty testing the relationship between the degree of risk or uncertainty in …
Persistent link: https://www.econbiz.de/10013137206
We use the NBER Shared Capitalism Database comprised of more than 40,000 employee surveys from 14 firms to explore whether a close match between workers' risk preferences and the riskiness of their compensation packages relates to improved employee outcomes including lower absenteeism, lower...
Persistent link: https://www.econbiz.de/10013109193
Persistent link: https://www.econbiz.de/10013086247
We examine the impact of the cultural norm of uncertainty avoidance on employee stock option (ESO) exercise behaviour … using proprietary data from a multinational firm. We find that employees from countries with higher levels of uncertainty … that employee attitudes towards uncertainty influence stock option exercise behaviours. Our findings further help to …
Persistent link: https://www.econbiz.de/10012936898
Theoretical and empirical studies argue that managerial hoarding of negative firm-specific information can result in large negative stock price corrections once the accumulated information is revealed. A managerial labor market with tournament-like progression provides managers with the...
Persistent link: https://www.econbiz.de/10012825407