Does Affi rmative Action Reduce Eff ort Incentives ?
نویسندگان
چکیده
This paper analyzes the incentive eff ects of affi rmative action in competitive environments modeled as contest games. Competition is between heterogeneous players where heterogeneity might be due to past discrimination. Two policy options are analyzed that tackle the underlying asymmetry: Either it is ignored and the contestants are treated equally, or affi rmative action is implemented which compensates discriminated players. It is shown in a simple two-player contest game that a tradeoff between affi rmative action and high eff ort exertion does not exist. Instead, the implementation of affi rmative action fosters eff ort incentives. Similar results hold in the n-player contest as well as under imperfect information if the heterogeneity between contestants is moderate. JEL Classifi cation: C72, D63, I38, J78
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