In case of the tournament based pay-structure, the regulator may be able to increase the welfare of the growers regulating the average performance standard upward. Since she cares about the welfare of the growers, her optimal is to leave part of the surplus to the growers. She does this through setting the relative standard at all others' average inflated by some function of the weight. If there is budgetary constraint then the regulator may not be able to implement this inflated standard.Livestock Production/Industries,
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