The common-support assumption of future type distributions is standard in the dynamic mechanism design literature (e.g., Baron and Besanko, 1984, Courty and Li, 2000, Eső and Szentes, 2007, Krähmer and Strausz, 2011, and Pavan, Segal, and Toikka, 2014). It is widely perceived that the...

This paper investigates the optimal formation of teams in a tournament. A manager sorts four workers---who differ in their productivity---into two teams. Workers on each team join forces to produce team output, and one team wins a prize; e.g., a bonus package. Two sorting patterns are possible:...