The incentive effect of a handicap

Research output: Contribution to journalArticle

3 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)42-45
Number of pages4
JournalEconomics Letters
Volume118
Issue number1
DOIs
Publication statusPublished - 2013 Jan

Keywords

  • Effort Incentive
  • Handicap
  • Monotone likelihood ratio Property
  • Tournament

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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