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Tournaments are commonly used in the workplace to determine promotion, assign bonuses, and motivate personal development. Tournament-based contracts can be very effective in eliciting high effort, often outperforming other compensation contracts, but they can also have negative consequences for...
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In winner-take-all tournaments, agents' performance is determined jointly by effort and luck, and the top performer is rewarded. We study the impact of the ''shape of luck'' -- the details of the distribution of performance shocks -- on incentives in such settings. We are concerned with the...
Persistent link: https://www.econbiz.de/10012415494
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 …
Persistent link: https://www.econbiz.de/10013438624
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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 …
Persistent link: https://www.econbiz.de/10013337710
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To test and replicate the superstar effect reported by Brown (2011) we empirically study contests where a single entrant has an endogenously higher probability of winning. Unlike the previous literature, we test for the presence of the superstar effect in several different contexts. Ultimately,...
Persistent link: https://www.econbiz.de/10011647661