An Experimental Investigation Of Alternative Incentive Schemes With Heterogeneous Agents
Experimental economics is used to compare tournaments (T) and fixed performance contracts (F) when agents have heterogeneous costs. Results suggest that: (1) There is no difference in average pooled effort across contracts, (2) high ability agents exert higher effort than low ability agents under both types of contracts, (3) average pooled earnings are affected by contract type, (4) high ability agents benefit from T whereas low ability agents are harmed by T, and (5) the difference in average pay between high and low ability agents is larger under T. Thus, T implement greater inequality.
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- Charles N. Noussair & Charles R. Plott & Raymond G. Riezman, 2013.
"An Experimental Investigation of the Patterns of International Trade,"
World Scientific Book Chapters,in: International Trade Agreements and Political Economy, chapter 17, pages 299-328
World Scientific Publishing Co. Pte. Ltd..
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- Christian Gollier, 2004. "The Economics of Risk and Time," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262572249, July.
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- repec:feb:artefa:0069 is not listed on IDEAS
- Joyce E. Berg & Lane A. Daley & John W. Dickhaut & John R. O'Brien, 1986. "Controlling Preferences for Lotteries on Units of Experimental Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 281-306. Full references (including those not matched with items on IDEAS)
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