Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5078141 | International Journal of Industrial Organization | 2013 | 15 Pages |
Abstract
⺠Tournaments are superior to piece rates when agents are subject to common shocks. ⺠We show that this is not true with limited liability and small firm liquidation value. ⺠Tournaments are still superior when the liquidation value is intermediate or large. ⺠Uncertainty in the price of output strengthens the need for tournaments.
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Social Sciences and Humanities
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Economics and Econometrics
Authors
Kosmas Marinakis, Theofanis Tsoulouhas,