David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Journal of Business Ethics 50 (2):187-198 (2004)
If a firm provides incentives by promoting those who have performed well in a job, it may transfer them to a job to which they are not well suited and agents are promoted to their levels of incompetence. Tournaments are an alternative to reputation as a means of ensuring that firms reward good performance when performance is unverifiable.
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