Arbeitspapier

Preemptive Behavior in Sequential Tournaments

Rank-order tournaments are usually modeled simultaneously. However, real tournaments are often sequentially. We show that agents' strategic behavior significantly differs in sequential tournaments compared to simultaneous tournaments. In a sequential tournament, under certain conditions the first acting agent chooses a preemptively high effort so that the following agent gives up. In general, the principal will prefer simultaneous tournaments in which preemptive behavior is impossible.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 159

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Compensation Packages; Payment Methods
Labor Contracts
Subject
Preemptive behavior
rank-order tournaments
sequential tournaments
Agency Theory
Wettbewerb
Spieltheorie
Theorie
Tournament

Event
Geistige Schöpfung
(who)
Jost, Peter-Jürgen
Kräkel, Matthias
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2000

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Jost, Peter-Jürgen
  • Kräkel, Matthias
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2000

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