The incentive effect of a handicap

Sam-Ho Lee

Economics Letters, 2013, vol. 118, issue 1, 42-45

Abstract: The incentive effect of a handicap in a tournament competition is studied. A handicap may decrease the effort levels of the advantaged group or the disadvantaged group. However, the average effort level will always increase as long as the performance measure is informative of effort in a specific sense: the monotone likelihood ratio property.

Keywords: Handicap; Effort Incentive; Tournament; Monotone likelihood ratio Property (search for similar items in EconPapers)
JEL-codes: C7 D0 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512005319
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:42-45

DOI: 10.1016/j.econlet.2012.09.024

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().