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Efficient tournaments within teams

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  • Alex Gershkov
  • Jianpei Li
  • Paul Schweinzer

Abstract

We analyze incentive problems in team and partnership structures where the only available information to condition a contract on is a partial and noisy ranking which specifies who comes first in efforts among the competing partners. This enables us to ensure both first-best efficient effort levels for all partners and the redistribution of output only among partners. Our efficiency result is obtained for a wide range of cost and production functions. Copyright (c) 2009, RAND.

Suggested Citation

  • Alex Gershkov & Jianpei Li & Paul Schweinzer, 2009. "Efficient tournaments within teams," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 103-119.
  • Handle: RePEc:bla:randje:v:40:y:2009:i:1:p:103-119
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Thomas Giebe & Paul Schweinzer, 2012. "Fuzzy Price-Quality Ratio Procurement under Incomplete Information," Discussion Papers 12/26, Department of Economics, University of York.
    2. Gershkov, Alex & Li, Jianpei & Schweinzer, Paul, 2016. "How to share it out: The value of information in teams," Journal of Economic Theory, Elsevier, vol. 162(C), pages 261-304.
    3. Qiang Fu & Qian Jiao & Jingfeng Lu, 2015. "Contests with endogenous entry," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(2), pages 387-424, May.
    4. Hoffmann, Magnus & Rota-Graziosi, Grégoire, 2012. "Endogenous timing in general rent-seeking and conflict models," Games and Economic Behavior, Elsevier, vol. 75(1), pages 168-184.
    5. Giebe, Thomas & Schweinzer, Paul, 2014. "Consuming your way to efficiency: Public goods provision through non-distortionary tax lotteries," European Journal of Political Economy, Elsevier, vol. 36(C), pages 1-12.
    6. Béatrice Roussillon & Paul Schweinzer, 2010. "Efficient emissions reduction," The School of Economics Discussion Paper Series 1004, Economics, The University of Manchester.
    7. Thomas Giebe & Paul Schweinzer, 2015. "Probabilistic procurement auctions," Review of Economic Design, Springer;Society for Economic Design, vol. 19(1), pages 25-46, March.
    8. Martin Kolmar & Dana Sisak, 2014. "(In)efficient public-goods provision through contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 239-259, June.
    9. Olivier Bos & Béatrice Roussillon & Paul Schweinzer, 2016. "Agreeing on Efficient Emissions Reduction," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 785-815, October.
    10. Jianpei Li, 2009. "Team production with inequity-averse agents," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(2), pages 119-136, August.
    11. Pull, Kerstin & Stadler, Manfred, 2015. "Contests vs. piece rates in product market competition," University of Tuebingen Working Papers in Economics and Finance 85, University of Tuebingen, Faculty of Economics and Social Sciences.
    12. Daske, Thomas, 2017. "Friends and Foes at Work: Assigning Teams in a Social Network," EconStor Preprints 172493, ZBW - German National Library of Economics.

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