Dutcher, E. Glenn; Balafoutas, Loukas; Lindner, Florian; … - 2013
Managers often use tournament incentive schemes which motivate workers to compete for the top, compete to avoid the … bottom, or both. In this paper we test the effectiveness and efficiency of these incentive schemes. To do so, we utilize … optimal contracts in a principal-agent setting, using a Lazear-Rosen type model that predicts equal effort and efficiency …