TY  - RPRT
        AU  - Höchtl, Wolfgang
AU  - Kerschbamer, Rudolf
AU  - Stracke, Rudi
AU  - Sunde, Uwe
        TI  - Incentives vs. Selection in Promotion Tournaments: Can a Designer Kill Two Birds with One Stone?
        PY  - 2011/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5755
        UR  - https://www.iza.org/publications/dp5755
        AB  - This paper studies the performance of promotion tournaments with heterogeneous participants in two dimensions: incentive provision and selection. Our theoretical analysis reveals a trade-off for the tournament designer between the two goals: While total effort is maximized if less heterogeneous participants compete against each other early in the tournament, letting more heterogeneous participants compete early increases the accuracy in selection. Experimental evidence supports our theoretical findings, indicating that the optimal design of promotion tournaments crucially depends on the objectives of the tournament designer. These findings have important implications for the optimal design of promotion tournaments in organizations.
        KW  - promotion tournaments
KW  - heterogeneity
KW  - incentive provision
KW  - selection
        ER  -