CARROTS AND STICKS: PRIZES AND PUNISHMENTS IN CONTESTS

C-Tier
Journal: Economic Inquiry
Year: 2012
Volume: 50
Issue: 2
Pages: 453-462

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

We study optimal contest design in situations where the designer can reward high performance agents with positive prizes and punish low performance agents with negative prizes. We link the optimal prize structure to the curvature of distribution of abilities in the population. In particular, we identify conditions under which, even if punishment is costly, punishing the bottom is more effective than rewarding the top in eliciting effort input. If punishment is costless, we study the optimal number of punishments in the contest. (JEL D44, D82, J31, J41)

Technical Details

RePEc Handle
repec:bla:ecinqu:v:50:y:2012:i:2:p:453-462
Journal Field
General
Author Count
3
Added to Database
2026-01-26