Fatigue in dynamic tournaments
Employee overwork and fatigue are a concern of managers in many organizations, as they may increase health and safety risks and decrease productivity. The problem is especially severe in competitive environments where compensation and promotions are awarded, explicitly or implicitly, on the basis of relative performance. In this paper, we propose a theory for, and study experimentally, the phenomenon of fatigue in dynamic contests aimed to mimic such settings. Theoretically, we find that if managers wish to avoid overwork, for example due to its negative impact on productivity, they should let their employees compete for promotion longer, with multiple intermediate performance evaluation stages. Experimentally, we find that subjects react strongly to changes in the environment related to fatigue and follow the comparative statics of equilibrium predictions. At the same time, within a given environment subjects behave as if they are unaware of the deteriorating effect of fatigue on their competitiveness. The results suggest that nonspecific information on consequences of fatigue is more effective than targeted information on how fatigue affects an employee’s chances of winning the competition.
|Date of creation:||Jun 2009|
|Date of revision:|
|Contact details of provider:|| Postal: 246 Bellamy Building, Tallahassee, Florida 32306-2180|
Web page: http://www.coss.fsu.edu/economics/
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Konrad, Kai A. & Kovenock, Dan, 2009.
Munich Reprints in Economics
22084, University of Munich, Department of Economics.
- Konrad, Kai A. & Kovenock, Dan, 2006. "Multi-battle contests," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 122, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Konrad, Kai A. & Kovenock, Dan, 2006. "Multi-battle contests," Purdue University Economics Working Papers 1187, Purdue University, Department of Economics.
- Konrad, Kai A. & Kovenock, Dan, 2006. "Multi-Battle Contests," CEPR Discussion Papers 5645, C.E.P.R. Discussion Papers.
- Christopher Harris & John Vickers, 1985. "Perfect Equilibrium in a Model of a Race," Review of Economic Studies, Oxford University Press, vol. 52(2), pages 193-209.
- O'Flaherty, Brendan & Siow, Aloysius, 1995.
"Up-or-Out Rules in the Market for Lawyers,"
Journal of Labor Economics,
University of Chicago Press, vol. 13(4), pages 709-35, October.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Douglas Davis & Robert Reilly, 1998.
"Do too many cooks always spoil the stew? An experimental analysis of rent-seeking and the role of a strategic buyer,"
Springer, vol. 95(1), pages 89-115, April.
- Davis, Douglas D & Reilly, Robert J, 1998. "Do Too Many Cooks Always Spoil the Stew? An Experimental Analysis of Rent-Seeking and the Role of a Strategic Buyer," Public Choice, Springer, vol. 95(1-2), pages 89-115, April.
- Bognanno, Michael L, 2001. "Corporate Tournaments," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 290-315, April.
- J. Atsu Amegashie & C. Bram Cadsby & Yang Song, 2005.
"Competitive Burnout: Theory and Experimental Evidence,"
0507, University of Guelph, Department of Economics and Finance.
- Amegashie, J. Atsu & Cadsby, C. Bram & Song, Yang, 2007. "Competitive burnout: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 59(2), pages 213-239, May.
- N/A, 2006. "Economic Overview," National Institute Economic Review, National Institute of Economic and Social Research, vol. 196(1), pages 2-3, April.
- Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993.
"Rigging the Lobbying Process: An Application of the All-Pay Auction,"
American Economic Review,
American Economic Association, vol. 83(1), pages 289-94, March.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1992. "Rigging the Lobbying Process: An Application of the All- Pay Auction," Papers 9-92-2, Pennsylvania State - Department of Economics.
- John Cadigan & Pamela Schmitt & Kurtis Swope & Robert Shupp, 2004.
"Multi-Period Rent-Seeking Contests with Carryover: Theory and Experimental Evidence,"
Departmental Working Papers
5, United States Naval Academy Department of Economics.
- Pamela Schmitt & Robert Shupp & Kurtis Swope & John Cadigan, 2004. "Multi-period rent-seeking contests with carryover: Theory and experimental evidence," Economics of Governance, Springer, vol. 5(3), pages 187-211, November.
- Christopher Ferrall & Anthony A. Smith, 1999.
"A Sequential Game Model Of Sports Championship Series: Theory And Estimation,"
The Review of Economics and Statistics,
MIT Press, vol. 81(4), pages 704-719, November.
- Christopher Ferrall & Anthony A. Smith, Jr., . "A Sequential Game Model of Sports Championship Series: Theory and Estimation," GSIA Working Papers 1997-38, Carnegie Mellon University, Tepper School of Business.
- Rick Harbaugh & Tilman Klumpp, 2005.
"Early Round Upsets and Championship Blowouts,"
Western Economic Association International, vol. 43(2), pages 316-329, April.
- Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
- Anderson, Lisa R & Stafford, Sarah L, 2003. "An Experimental Analysis of Rent Seeking under Varying Competitive Conditions," Public Choice, Springer, vol. 115(1-2), pages 199-216, April.
- Garfinkel, Michelle R. & Skaperdas, Stergios, 2007.
"Economics of Conflict: An Overview,"
Handbook of Defense Economics,
- Beck A. Taylor & Justin G. Trogdon, 2002. "Losing to Win: Tournament Incentives in the National Basketball Association," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 23-41, January.
- Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
- Alannah Orrison & Andrew Schotter & Keith Weigelt, 2004. "Multiperson Tournaments: An Experimental Examination," Management Science, INFORMS, vol. 50(2), pages 268-279, February.
- repec:pit:wpaper:205 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:fsu:wpaper:wp2009_06_03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dmitry Ryvkin)
If references are entirely missing, you can add them using this form.