Angelova, Vera Giebe, Thomas Ivanova-Stenzel, Radosveta
Year of Publication:
Discussion Paper 60
If agents are exposed to continual competitive pressure, how does a short-term variation of the severity of the competition affect agents\' performance? In a real-effort laboratory experiment, we study a one-time increase in incentives in a sequence of equally incentivized contests. Our results suggest that a short-term increase in incentives induces a behavioral response but does not boost total performance.
contest tournament real-effort experiment contract theory forward-looking