profitable for owners to hire biased managers. Our work shows that a universal policy that effectively eliminates such biases …

contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

having managers cheat to win. We explore tournament theory to detail its vulnerabilities to various forms of cheating …, we discuss possible ways to address these vulnerabilities to the schemes we rely on to motivate managers to put in the …