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Travel incentives as tournament compensation - Problems of contestant heterogeneity and solutions


Backes-Gellner, U; Pull, K (2008). Travel incentives as tournament compensation - Problems of contestant heterogeneity and solutions. In: Academy of Management Annual Meeting, Anaheim, California, USA, 8 August 2008 - 13 August 2008.

Abstract

Whereas the theoretical literature on organizational reward systems repeatedly points to the importance of tournament models from an efficiency perspective, very few is known about the application and effectiveness of tournament compensation in organizations, especially when contestant heterogeneity is taken into account. While the distorting effects of contestant heterogeneity on tournament incentives have been theoretically analyzed for the two-contestant-case, tournament incentives in a typical organizational context with more than two and with heterogeneous contestants and with more than one prize, have not been studied so far. In our paper, we analyze these effects theoretically as well as empirically by studying in-centive travel sales contests as a quantitatively important component of compensation, and we also present first empirical evidence on (successful and unsuccessful) organizational attempts to reduce contestant heterogeneity by active handicapping and league-building.

Whereas the theoretical literature on organizational reward systems repeatedly points to the importance of tournament models from an efficiency perspective, very few is known about the application and effectiveness of tournament compensation in organizations, especially when contestant heterogeneity is taken into account. While the distorting effects of contestant heterogeneity on tournament incentives have been theoretically analyzed for the two-contestant-case, tournament incentives in a typical organizational context with more than two and with heterogeneous contestants and with more than one prize, have not been studied so far. In our paper, we analyze these effects theoretically as well as empirically by studying in-centive travel sales contests as a quantitatively important component of compensation, and we also present first empirical evidence on (successful and unsuccessful) organizational attempts to reduce contestant heterogeneity by active handicapping and league-building.

Additional indexing

Item Type:Conference or Workshop Item (Paper), refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Event End Date:13 August 2008
Deposited On:02 Feb 2009 16:41
Last Modified:05 Apr 2016 12:34
Publisher:Academy of Management Anaheim
Additional Information:The Academy of Management Annual Meeting Proceedings is published on CD-ROM. It includes 250-word abstracts of all papers and symposia presented at the conference and shortened versions of the “Best Papers” that have been accepted for inclusion in the program (http://meeting.aomonline.org/2008/index.php?option=com_content&task=view&id=141&Itemid=124). This paper is among the "Best Papers" which were presented at the conference.
Official URL:http://meeting.aomonline.org/2008/index.php?option=com_frontpage&Itemid=1

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