Tournaments are widely used in organizations, explicitly or implicitly, to reward the best-performing employees, e … assignments. We explore the impact of the allocation of prizes on the effectiveness of tournament incentive schemes. We show that … in the presence of heterogeneity. Under a wide range of conditions, punishment tournaments, i.e., tournaments that award …

high-prize tournament, while low-ability agents compete for the low prize. However, there are also equilibria in which … agents follow a mixed strategy and there can be reverse sorting, i.e. low-ability agents are in the tournament with the high … prize, while high-ability agents are in the low-prize tournament. We show that total effort always decreases compared to a …

high-prize tournament, while low-ability agents compete for the low prize. However, there are also equilibria in which … agents follow a mixed strategy and there can be reverse sorting, i.e. low-ability agents are in the tournament with the high … prize, while high-ability agents are in the low-prize tournament. We show that total effort always decreases compared to a …

choice, groups typically vote for the reward option, even though punishment is actually more effective in sustaining high …