Demougin, Dominique; Fluet, Claude - Centre Interuniversitaire sur le Risque, les Politiques … - 2003
We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … evaluation is costly. The principal never benefits from empathy between the workers, by he may benefit from their propensity for … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …
