Brookins, Philip; Lightle, John; Ryvkin, Dmitry - Department of Economics, Florida State University - 2014
environments depends on the degree of effort complementarity within groups. For moderately steep costs of effort, we find that the … optimal sorting is balanced (i.e., minimizing the variance in ability between groups) when complementarity is weak, and … unbalanced (i.e., maximizing the variance in ability) when complementarity is strong. However, when the cost of effort is …