Performance bundling in multi-dimensional competitions

B-Tier
Journal: International Journal of Industrial Organization
Year: 2024
Volume: 95
Issue: C

Authors (3)

Lu, Jingfeng (National University of Singapo...) Shen, Bo (not in RePEc) Wang, Zhewei (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we investigate circumstances in which performance bundling can be used as an effective instrument to foster effort supply in multi-dimensional competitions between two (possibly asymmetric) players. We find that besides a beneficial cost-saving effect that is diminishing with the asymmetry across players, performance bundling can cause a counterproductive unbalancing effect, which intensifies with this asymmetry. Thus, performance bundling (pure or partial) is desirable only if the players are sufficiently symmetric. Otherwise, a set of separate contests is optimal. Our model provides a new perspective for analyzing incentive schemes in contest environments that involve competitions in multiple dimensions.

Technical Details

RePEc Handle
repec:eee:indorg:v:95:y:2024:i:c:s0167718724000286
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25