We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …

We show that if agents are risk neutral, prizes outperform wages if and only if there is sufficient pride and envy …

effectiveness of tournaments. Moreover, the data reveal that agents focus their preferences either on the principal or on the agent. …

We show that if agents are risk neutral, prizes outperform wages when there is sufficient pride and envy relative to …