potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition … that the agents face. We study a tournament model and we find that more intense competition, measured by the number of …

potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition … that the agents face. We study a tournament model and we find that more intense competition, measured by the number of …

This paper examines how the degree of competition among firms in an industry affects the optimal incentives that firms … intensity of product market competition increases, principals unambiguously provide stronger incentives to their agents to … changes in the nature of competition lead to changes in the equilibrium market structure. The main result is that as the …