External market condition and tournaments: Theory and evidence
Ming-Jen (明仁) Lin (林) ()
Economics Letters, 2008, vol. 99, issue 1, 75-78
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.
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