Homogenous and Heterogenous Contestants in Piece Rate Tournaments: Theory and Empirical Analysis

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2011
Volume: 29
Issue: 4
Pages: 506-517

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

In this article we show that sorting different ability contestants in piece rate tournaments into more homogenous groups alters agents' incentives to exert effort. We propose a method for structurally estimating the piece rate tournament game with heterogenous players and apply it to the payroll data from a broiler production contract. Our counterfactual analysis shows that under reasonable assumptions, both the principal and the growers can gain when the tournament groups are heterogenized. This business strategy could be difficult to implement in real-life settings, however. This article has supplementary material online.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:29:y:2011:i:4:p:506-517
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29