We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
GRIND OR GAMBLE? AN EXPERIMENT ON EFFORT AND SPREAD SEEKING IN CONTESTS.
- Authors
Andersson, Ola; Holm, Håkan J.; Wengström, Erik
- Abstract
We conduct a contest experiment to study if spread seeking and effort can be managed when participants can invest in increasing both the mean and the spread of an uncertain performance variable. Subjects are treated with different prize schemes and in accordance with theory, we observe higher investments in spread for the winner‐take‐all scheme. Both types of investments can be controlled with a three‐level prize scheme. However, the control management is imperfect and behavior is characterized by inertia. We also explore the correlation between effort and spread across subjects and find that is robustly positive.
- Subjects
PERFORMANCE evaluation; INCENTIVE awards; COST control; RISK-taking behavior; EMERGING markets
- Publication
Economic Inquiry, 2020, Vol 58, Issue 1, p169
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1111/ecin.12852