Schöttner, Anja; Thiele, Veikko - In: Journal of Economics & Management Strategy 19 (2010) 3, pp. 699-731
"We analyze the optimal combination of promotion tournaments and linear individual performance pay in an employment relationship. An agent's effort is nonobservable and he has private information about his suitability for promotion. Thus, the two incentive schemes need to be combined to serve...