Tournaments work best when it is hard to determine worker effort and there are random external forces that affect worker performance.

Question

Quizplus · Accepted Answer

Tournaments are designed to reward and incentivize high worker effort and performance. However, if it is easy to determine worker effort, there may be less motivation to perform well because the reward is certain. Similarly, if worker performance is solely dependent on factors within their control, such as skill level, then the tournament may not be as effective in motivating workers to perform at a higher level. Random external forces, such as luck, chance, or unforeseen obstacles, can create a more level playing field and add an element of unpredictability, making the tournament more exciting and motivating for workers.

Tournaments Work Best When It Is Hard to Determine Worker