Homogenous and Heterogenous Contestants in Piece Rate Tournaments: Theory and Empirical Analysis
计件锦标赛中的同质与异质参赛者：理论与实证分析
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…