This paper proposes an alternative to standard cardinal tournaments. The analysis contrasts "hybrid" cardinal … tournaments to standard cardinal tournaments and piece rates. It shows that providing for partial insurance against common … weights), or than providing for no insurance at all via piece rates. Hybrid tournaments increase the principal's profit …

and local governments, in procurement, in rent-seeking contests and in tournaments used by HMOs. …A highly acclaimed result is that tournaments are superior to piece rates when the agents are risk averse and their … production activities are subject to a relatively large common shock. The reason is that tournaments allow the principal to trade …

A celebrated result in the theory of tournaments is that relative performance evaluation (tournaments) is a superior … idiosyncratic shocks. This is because tournaments get closer to the first best by filtering common uncertainty. This paper shows … that, surprisingly, tournaments are superior even when agents are liquidity constrained so that transfers to them cannot …

analyzed by focusing on three incentive schemes that are frequently used in practice: tournaments, bonuses and piece rates. We …

analysed by focusing on three incentive schemes that are frequently used in practice: tournaments, bonuses and piece rates. We …

analyzed by focusing on three incentive schemes that are frequently used in practice: tournaments, bonuses and piece rates. We …

This paper compares relative performance evaluation via tournaments to absolute performance evaluation via piece rates … tournaments. In particular, we show that the more heterogeneous agents are the less insurance can be offered through tournaments … and the less dominant tournaments are over piece rates. Thus, absolute performance piece rates should be preferred when …