Showing 1 - 10 of 111
Individuals faced by a tournament can oftentimes not only choose their effort level, but also the risk level of their strategy. There are some theoretical contributions on risk taking in tournaments, which mainly point out disadvantages with respect to exerted effort. Empirical evidence is rare....
Persistent link: https://www.econbiz.de/10010263129
In economic approaches it is often argued that reputation considerations influence the behavior of individuals or firms and that reputation influences the outcome of markets. Empirical evidence is rare though. In this contribution we argue that a positive reputation of sellers should have an...
Persistent link: https://www.econbiz.de/10010333919
In many situations, agents take risks by choosing an action that increases their performance immediately, but that potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition that the agents face. We study a tournament model and...
Persistent link: https://www.econbiz.de/10013438608
Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications for labor market outcomes are not well understood. In this paper, we analyze how men's relatively higher overconfidence, combined with competitive job incentives, affects...
Persistent link: https://www.econbiz.de/10014290249
In competitive settings, disparities in player strength are common. It is intuitively unclear whether a stronger player would opt for larger or smaller effort compared to weaker players. Larger effort could leverage their strength, while lower effort might be justified by their higher...
Persistent link: https://www.econbiz.de/10014513233
We analyze the interaction of explicit and implicit contracts in a model with selfish and fair principals. Fair principals are willing to honor implicit agreements, whereas selfish principals are not. Principals are privately informed about their types. We investigate a separating equilibrium in...
Persistent link: https://www.econbiz.de/10010308482
We investigate the effect of employee heterogeneity on the incentive to put forth effort in a market-based tournament. Employers use the tournament's outcome to estimate employees' abilities and accordingly condition their wage offers. Employees put forth effort, because by doing so they...
Persistent link: https://www.econbiz.de/10010311042
A large part of the theoretical tournament literature argues that rank-order tournaments only unfold their incentive effects if the contestants all have similar prospects of winning. In heterogeneous fields, the outcome of the tournament is relatively clear and the contestants reduce their...
Persistent link: https://www.econbiz.de/10010318184
We investigate how to strategically motivate sales agents in intermediary markets. In collaboration with a large travel company, we run a field experiment with more than 1, 200 independently owned intermediaries that sell our study firm's own products as well as products from competitors to end...
Persistent link: https://www.econbiz.de/10014525233
We study how the presence of promotion competition in the labor market affects household specialization patterns. By embedding a promotion tournament model in a household setting, we show that specialization can emerge as a consequence of competitive work incentives. This specialization outcome,...
Persistent link: https://www.econbiz.de/10014540898