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This paper analyzes intertemporal effort provision in two-stage tournaments. A principal with a fixed budget for prizes faces two risk-neutral agents. He observes noisy signals of effort in both periods. His goal is to maximize either total efforts (perfect substitutes) or the product of first-...
Persistent link: https://www.econbiz.de/10010338948
) intensifies the competition: in particular, both top and mean realized scores increase. To tame incentives to provide excessively …
Persistent link: https://www.econbiz.de/10011914839
Tournaments are widely used in the economy to organize production and innovation. We study individual data on 2,775 contestants in 755 software algorithm development contests with random assignment. The performance response to added contestants varies non-monotonically across contestants of...
Persistent link: https://www.econbiz.de/10010192352
To test and replicate the superstar effect reported by Brown (2011) we empirically study contests where a single entrant has an endogenously higher probability of winning. Unlike the previous literature, we test for the presence of the superstar effect in several different contexts. Ultimately,...
Persistent link: https://www.econbiz.de/10011647661
that in two-player contests the optimal delegation involves giving the agent incentives to maximize principal's payoff … while in contests with more than two players incentives will be different from principal's payoff maximization. Further …
Persistent link: https://www.econbiz.de/10003790694
We conduct a contest experiment where participants can invest in increasing both the mean and the spread of an uncertain performance variable. Subjects are treated with different prize schemes and in accordance with theory we observe substantial investments in spread. We find that both types of...
Persistent link: https://www.econbiz.de/10011586585
I examine a game-theoretical model of two variants of double-elimination tournaments, and derive the equilibrium behavior of symmetric players and the optimal prize allocation assuming a designer aims to maximize total effort. I compare these theoretical properties to the well-known...
Persistent link: https://www.econbiz.de/10012950756
We examine theoretically and experimentally how combining between-team and within-team incentives affects behavior in … team tournaments. Theory predicts that free-riding is likely to occur when there are only between-team incentives, and … offering within-team incentives may solve this problem. However, if individuals collude, then within-team incentives may not be …
Persistent link: https://www.econbiz.de/10012921253
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