In many environments, tournaments can elicit more effort from workers, except perhapswhen workers can sabotage each other. Because it is hard to separate effort, ability andoutput in many real workplace settings, the empirical evidence on the incentive effect oftournaments is thin...

Not enough is known about the responsiveness of individuals, in particular those who tend to work under different incentives, to changes in marginal tax rates. We ask whether changes in marginal tax rates are less distortionary for workers engaged in a contest. To examine this potential...