Does Affirmative Action Reduce Effort Incentives? – A Contest Game Analysis

This paper analyzes the incentive effects of affirmative action in competitive environments modeled as contest games. Competition is between heterogeneous players where heterogeneity might be due to past discrimination. Two policy options are analyzed that tackle the underlying asymmetry: Either it is ignored and the contestants are treated equally, or affirmative action is implemented which compensates discriminated players. It is shown in a simple two-player contest game that a tradeoff between affirmative action and high effort exertion does not exist. Instead, the implementation of affirmative action fosters effort incentives. Similar results hold in the n-player contest as well as under imperfect information if the heterogeneity between contestants is moderate.Asymmetric contest; affirmative action; discrimination

Does Affirmative Action Reduce Effort Incentives? A Contest Game Analysis

In this paper a contest game with heterogeneous players is analyzed in which heterogeneity could be the consequence of past discrimination. Based on the normative perception of the heterogeneity there are two policy options to tackle this heterogeneity: either it is ignored and the contestants are treated equally, or affirmative action is implemented which compensates discriminated players. The consequences of these two policy options are analyzed for a simple two-person contest game and it is shown that the frequently criticized trade-off between affirmative action and total effort does not exist: Instead, affirmative action fosters effort incentives. A generalization to the n-person case and to a case with a partially informed contest designer yields the same result if the participation level is similar under each policy.Asymmetric contest; affirmative action; discrimination

Conflict Networks

Conflict parties are frequently involved into more than one conflict at a given time. In this paper the interrelated structure of conflictive relations is modeled as a conflict network where opponents are embedded in a local structure of bilateral conflicts. Conflict parties invest in specific conflict technology to attack their respective rivals and defend their own resources.We show that there exists a unique equilibrium for this conflict game and examine the relation between aggregated equilibrium investment (interpreted as conflict intensity) and underlying network characteristics. The derived results have implications for peaceful resolutions of conflicts because neglecting the fact that opponents are embedded into an interrelated conflict structure might have adverse consequences for conflict intensity.Network games, conflicts, conflict resolution

Effort Maximization in Asymmetric N-person Contest Games

This paper provides existence and characterization of the optimal contest success function under the condition that the objective of the contest designer is total effort maximization among n heterogeneous players. Heterogeneity of players makes active participation of a player in equilibrium endogenous with respect to the specific contest success function adopted by the contest designer. Hence, the aim of effort maximization implies the identification of those players who should be excluded from making positive efforts.We give a general proof for the existence of an optimal contest success function and provide an algorithm for the determination of the set of actively participating players.This is turn allows to determine optimal efforts in closed form.An important general feature of the solution is that maximization of total effort requires at least three players to be active.Effort maximization, existence of solution, asymmetric contests, participation constraints

Effort Maximization in Asymmetric N-Person Contest Games

This paper provides existence and characterization of the optimal contest success function under the condition that the objective of the contest designer is total effort maximization among n heterogeneous players. Heterogeneity of players makes active participation of a player in equilibrium endogenous with respect to the specific contest success function adopted by the contest designer. Hence, the aim of effort maximization implies the identification of those players who should be excluded from making positive efforts. We give a general proof for the existence of an optimal contest success function and provide an algorithm for the determination of the set of actively participating players. This is turn allows to determine optimal efforts in closed form. An important general feature of the solution is that maximization of total effort requires at least three players to be active.effort maximization, existence of solution, asymmetric contests, participation constraints

Workers' participation in wage setting and opportnistic behaviour: Evidence from a gift-exchange experiment

Our study analyzes the consequences of workers' participation in the wage setting process on effort exertion. The experimental design is based on a modified giftexchange game where the degree of workers' involvement in the wage setting process is systematically varied among the workers. The experimental data reveals that workers' participation leads actually to a decline in effort exertion which can be explained by negative reciprocity of the respective worker. These results put some recently observed positive effects from workers' participation in experimental labor markets into perspective and are more in line with the ambiguous results from empirical studies

Workers’ participation in wage setting and opportunistic behavior

Our study analyzes the consequences of workers’ participation in the wage setting process on effort exertion. The experimental design is based on a modified gift-exchange game where the degree of workers’ involvement in the wage setting process is systematically varied among the workers. The experimental data reveals that workers’ participation leads actually to a decline in effort exertion which can be explained by negative reciprocity of the respective worker. These results put some recently observed positive effects from workers’ participation in experimental labor markets into perspective and are more in line with the ambiguous results from empirical studies

Interorganizational Information System Deployment in Supply Chain Triads

Interorganizational information systems (IOIS) are valuable tools providing platforms for information flow enabling more efficient and reliable collaboration in digitalized supply chains. An IOIS is subject to influencing factors originating in the company and environment. Inspired by complex adaptive system theory, an agent-based simulation model is designed, exploring factors affecting the integration and efficiency of IOIS. These factors are derived from resource-based view and dynamic capabilities theory. The influence on information system deployment is assessed by merging these factors into exogenous, intercompany climate, and operational dimensions. First, the results indicate that product-specific factors have a greater influence than the environment when deploying an IOIS. Second, deliberate design of IC relationships should be considered during the development of an IOIS. Third, extensive information exchange between supply chain partners might be disadvantageous for IOIS utilization. Fourth, the advantages of IOIS can be lost when completely open systems are used