We examine the problem of designing performance contracts with multiple agents when principals must compete for quality teams from a heterogeneous pool of agents. The trade-off principals face between good recruiting and good team performance provides micro foundations for agents to form stable...

I develop a simple Hotelling model which relates the distribution of consumer preferences to the intensity of competition. I impose two properties, mean preserving spread (MPS) and monotone likelihood ratio property (MLRP), on distribution functions. These properties provide a way to represent...