Inequity Aversion in Tournaments
AbstractWe consider the cost of providing incentives through tournaments when workers are inequity averse and performance evaluation is costly. The principal never benefits from empathy between the workers, by he may benefit from their propensity for envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less envious ones when they are low.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 0322.
Date of creation: 2003
Date of revision:
Tournaments; Inequity aversion; Envy; Incentives; Performance;
Other versions of this item:
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- J4 - Labor and Demographic Economics - - Particular Labor Markets
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