Stracke, Rudi; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2014
compensated by positive continuation-value and selection effects. Due to these positive dynamic incentive effects of heterogeneity …This paper shows that the incentive effects of heterogeneity may be positive rather than negative in dynamic contests … with multiple stages. In particular, the well-studied adverse effects of heterogeneity in static interactions are …