Promotions play an important role for the provision of incentives in firms. We analyze incentives in multistage elimination tournaments with controlled laboratory experiments. In our two main treatments, we compare a two-stage tournament to a one-stage tournament. Subjects in the two-stage...

The importance of fair and equal treatment of workers is at theheart of the debate in organizational management. In this regard,we study how reward schemes and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...