Incentives and selection in promotion contests: Is it possible to kill two birds with one stone?

Rudi Stracke, Wolfgang Höchtl (), Rudolf Kerschbamer and Uwe Sunde

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

Abstract: This paper investigates whether a designer can improve both the incentive provision and the selection performance of a promotion contest by making the competition more (or less) dynamic. A comparison of static (one-stage) and dynamic (two-stage) contests reveals that this is not the case. A structural change that improves the performance in one dimension leads to a deterioration in the other dimension. This suggests that modifications of the contest structure are an alternative to strategic handicaps. A key advantage of structural handicaps over participant-specific ones is that the implementation of the former does not require prior identification of worker types.

Keywords: Promotion Contests; Heterogeneity; Incentives; Selection; Handicapping (search for similar items in EconPapers)
JEL-codes: J33 M52 (search for similar items in EconPapers)
Pages: 41
Date: 2014-03
New Economics Papers: this item is included in nep-ger, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Incentives and Selection in Promotion Contests: Is It Possible to Kill Two Birds with One Stone? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2014-09

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