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Title: |
Sorting in Heterogeneous Contests |
| Author: |
Chung,
Yeon-Seung |
| Author
Affiliation: |
Daewoo Research
Institute |
| Source: |
International Economic Journal, Winter 1990, v. 4, no. 4, pp. 71-89 |
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Publication Date: |
Winter 1990 |
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Abstract: |
This paper establishes the efficient
sorting of contests when the actions of workers are not observable to
firms and the workers are heterogeneous by utilizing the assumptions
that the productivities of each type of worker vary with the firms. The
previous result of "nonexistence" of efficient sorting of contests is
shown due to the strict use of the risk-neutral and separable utility
functions. Efficient sorting is possible because both the probability of
winning and the level of prizes determine the expected return in
contests, which move in the opposite directions. |
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