Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060335 | Economics Letters | 2013 | 4 Pages |
Abstract
⺠The incentive effect of a handicap in a tournament is studied. ⺠Effort incentive is captured by the probability of being on the cutoff of winning. ⺠A handicap can decrease effort incentives of the advantaged or the disadvantaged group. ⺠Average effort level, however, will always increase by handicap as long as performance is informative of effort.
Keywords
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Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sam-Ho Lee,