Economists call a compensation scheme in which pay is based on relative performance a tournament.
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Q198: Managers of businesses and sports teams must
Q199: Strong incentives are a good idea as
Q200: The closer "what you pay for" is
Q201: Compared with a piece rate system, hourly
Q202: Paying sales workers based on a tournament
Q204: If rewards are mostly based on luck,
Q205: A tournament increases the amount of risk
Q206: When sales vary for reasons having little
Q207: If used properly, piece rates can greatly
Q208: Weak incentives typically insulate workers from risk.
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