IZA Discussion Paper No. 647
نویسندگان
چکیده
Envy and Compassion in Tournaments Many experiments indicate that most individuals are not purely motivated by material self interest, but also care about the well being of others. In this paper we examine tournaments among inequity averse agents, who dislike disadvantageous inequity (envy) and advantageous inequity (compassion). It turns out that inequity averse agents exert higher effort levels than purely self-interested agents for a given prize structure. Contrary to standard tournament theory first-best efforts can not be implemented when prizes are endogenous. Several extensions are studied like the case of spiteful agents, sabotage, asymmetric agents and an application on the choice between vertical and lateral promotions within firms. JEL Classification: M51, M52, D23, D63
منابع مشابه
IZA Discussion Paper No. 274
This Discussion Paper is issued within the framework of IZA's research area 7KHH:HOIDUH6WDWHH DQG/DERUU0DUNHWVAny opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual in...
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