Tournament theory

Tournament theory

Tournament theory is the theory in economics used to describe certain situations where wage differences are based not on marginal productivity but instead based upon relative differences between the individuals. This theory was examined in-depth by economists Edward Lazear and Sherwin Rosen.

External links

* [http://ingrimayne.com/econ/resouceProblems/Tournament.html Webpage on Tournament theory]
* [http://www.forbes.com/2006/05/20/executive-compensation-tournament_cx_th_06work_0523pay.html Forbes article on Tournament theory]
* [http://tournamenttheory.org/ Tournament Theory Website]


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