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