Tournaments have long been used as a resource allocation device. Regardless of the margin of victory, a tournament's champion is typically rewarded far more handsomely than are its losers. For this reason, a tournament can generally be expected to elicit spectacular levels of performance from a...

Estonia completed its pension system reforms in 2002. The new 3-pillar system features a first pillar of universal state pension, a second pillar of funded supplementary pension and a third pillar of independent pension savings. The paper reviews the new pension system and the early experience....

This article reviews the basic theoretical model of risk adjustment (Glazer/McGuire 2000) with a special focus on a coherent presentation of the main results. With adverse selection a regulator pursuing efficiency and solidarity objectives will need a risk adjustment scheme acting on a signal to...

This paper investigates the processing of repeated complex information. The focus of this study is whether additional information and the introduction of performance-based payoffs have an influence on judgment. Therefore, an experiment is designed to investigate the degree of precision and of...

The paper examines the incentive effects of federal fiscal transfers on states' spending in India. To this end, a panel data set for 22 states for the period 1980-81 to 2004-05 is used; and fixed and random effect panel regression models are employed. Per capita resource transfers in channel...

This chapter surveys the rapidly growing literature in which risk preferences are measured and manipulated in laboratory and field experiments. The most commonly used measurement instruments are: an investment task for allocations between a safe and risky asset, a choice menu task for eliciting...

This study reports experiments that examine outcomes when agents choose between a payment scheme that rewards based on absolute performance (i.e., piece rate) and a scheme that rewards based on relative performance (i.e., a tournament). Holding total payments in the tournament constant,...