In an asymmetric tournament model with endogenous risk choice by the agents it is shown that equilibrium efforts decrease (increase) with risk if abilities are sufficiently similar (different). Risk also affects winning probabilities. The interaction of both effects is analyzed.

Synergies in production are ubiquitous in shared production processes such as those involving individuals within a team, departments within a firm, or industries within a country. Using a weakest link game with ex post bargaining to redistribute the joint surplus, we study a situation in which...

[...]We conclude that technological change, combinedwith overall growth in the capital stock, is the most importantfactor driving the growing wage inequality betweenlow-skilled and high-skilled workers. Increased competitionfrom abroad, both from developing and industrializedcountries, appears...

After decades of theoretical inquiry, a burgeoning empirical literature now debates how ownership patterns, governance choices, and executive compensation structure affect firms' competitive behavior. An often-made assumption in the debate is that relative performance evaluation (RPE) of top...

This paper tests two hypotheses from the theory of elimination tournaments: (i) that uneven tournaments, where the contestants are ex ante heterogeneous, entail lower effort exertion; this is a prediction from agency theory that has not been tested empirically before; and (ii) whether incentives...

Rank-order tournaments are usually modeled simultaneously. However, real tournaments are often sequential. We show that agents’ strategic behavior in sequential-move tournaments significantly differ from the one in simultaneous-move tournaments: In a sequential-move tournament with...

Zeitarbeit hat sich für die deutsche Wirtschaft zu einem wichtigen Flexibilisierungsinstrument entwickelt. Dem zunehmenden Mangel an neuen, qualifizierten Zeitarbeitnehmern kann auch in der Zeitarbeit durch die Qualifizierung bestehender Mitarbeiter begegnet werden. Auch wenn Weiterbildung oft...

This paper is one of the first to examine how the use of fixed-term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time-invariant unobserved workplace characteristics, endogeneity and state...

The tourism worldwide is continuously making high development ascent and the same is a result of the expansion in the hotel industry. About that is very remarkable the improvement of the working processes, i.e. the quality of the service, but also the construction of numerous new facilities,...

We present a mechanism based on managerial incentives through which common ownershipaffects product market outcomes. Firm-level variation in common ownership causes varia-tion in managerial incentives and productivity across firms, which leads to intra-industryand intra-firm cross-market...