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External market condition and tournaments: Theory and evidence

Ming-Jen (明仁) Lin (林) ()

Economics Letters, 2008, vol. 99, issue 1, 75-78

Abstract: This paper adds in a new assumption, 'product price', into the tournament model and shows the convexity of pay structure should become stronger when the produce price increases. Empirical results from a Taiwanese textile company are consistent with the implication.

Date: 2008
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:75-78