Dynamically Sabotage-Proof Tournaments

A-Tier
Journal: Journal of Labor Economics
Year: 2012
Volume: 30
Issue: 3
Pages: 627 - 655

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

This article explores the consequences of sabotage for the design of incentive contracts. The possibility of sabotage gives rise to a dynamic concern, similar to the Ratchet effect, which distorts the agents' incentives. We first show that the mere possibility of sabotage may make it impossible to implement the first-best effort, and we then offer two distinct incentive schemes, fast track and late selection, to circumvent this problem. The present model offers a mechanism through which these two schemes arise in a unified framework.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/664945
Journal Field
Labor
Author Count
1
Added to Database
2026-02-02