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U-type versus J-type tournaments

  • Matthias Kräkel

In practice, two types of tournaments can be distinguished - U-type and J-type tournaments. In U-type tournaments, workers receive prizes that have been fixed in advance. In J-type tournaments, the employer fixes an aggregate wage bill in advance, which is then shared among the workers according to their relative performance. The results of the paper show that the outcomes of the two tournament types substantially differ. Especially, an employer will prefer J-type to U-type tournaments if the number of workers is large, whereas the opposite holds for small numbers of workers.

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Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse34_2001.

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Length: 60
Date of creation: Nov 2001
Date of revision:
Handle: RePEc:bon:bonedp:bgse34_2001
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
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  1. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  2. Macleod, W.B. & Kanemoto, Y., 1990. "Firm Reputation and Self-Enforcing Labour Contracts," Cahiers de recherche 9026, Universite de Montreal, Departement de sciences economiques.
  3. Malcomson, James M, 1986. "Rank-Order Contracts for a Principal with Many Agents," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 807-17, October.
  4. Kanemoto, Yoshitsugu & Bentley MacLeod, W., 1989. "Optimal labor contracts with non-contractible human capital," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 385-402, December.
  5. Kovenock, D. & de Vries, C.G., 1995. "The All-Pay Auction with Complete Information," UFAE and IAE Working Papers 311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  6. Krakel, Matthias, 2000. "Relative deprivation in rank-order tournaments," Labour Economics, Elsevier, vol. 7(4), pages 385-407, July.
  7. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
  8. Edward P. Lazear & Sherwin Rosen, 1979. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc.
  9. Malcomson, James M, 1984. "Work Incentives, Hierarchy, and Internal Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 486-507, June.
  10. Stark, Oded, 1990. "A Relative Deprivation Approach to Performance Incentives in Career Games and Other Contests," Kyklos, Wiley Blackwell, vol. 43(2), pages 211-27.
  11. repec:tpr:qjecon:v:109:y:1994:i:4:p:921-55 is not listed on IDEAS
  12. repec:tpr:qjecon:v:109:y:1994:i:4:p:881-919 is not listed on IDEAS
  13. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
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