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pay and performance. To the extent that product-market competition can affect the incentive schemes offered by firms to … their executives, the analysis of the effects of competition on the structure of compensation may be informative for policy …
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Everyone remembers a plot where a disadvantaged individual facing the prospect of failure, spends more effort, turns around the game and wins unexpectedly. Most tournament theories, however, predict the opposite pattern and see the disadvantaged agent investing less effort. We show that 'turn...
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