Homogenous and Heterogenous Contestants in Piece Rate Tournaments: Theory and Empirical Analysis

Vukina, Tomislav; Zheng, Xiaoyong

doi:10.1198/jbes.2010.08345

Cited by 5 publications

(2 citation statements)

References 22 publications

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“…For example, Knoeber and Thurman (1994), Tsoulouhas and Vukina (1999) and Levy and Vukina (2004) fix the output margin by assuming common target weight of finished broilers and constant mortality rate. The alternative is to fix the cost margin and model the tournament as a contest of who can produce more output with given amount of inputs, see Vukina and Zheng (2011). Neither of the two simplifications are suitable to our problem.…”

Section: Stylized Facts and Preliminary Assumptionsmentioning

confidence: 99%

Sorting into Contests: Evidence from Production Contracts

Wang¹,

Vukina

2019

The B.E. Journal of Economic Analysis &Amp; Policy

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In this paper, we investigate sorting patterns among chicken producers who are offered a menu of contracts to choose from. We show that the sorting equilibrium reveals a positive sorting where higher ability producers self-select themselves into contracts to grow larger chickens and lower ability types self-select themselves into contracts to grow smaller birds. We also show that eliciting this type of sorting behavior is profit maximizing for the principal. In the empirical part of the paper, we first estimate growers’ abilities using a two-way fixed effects model and subsequently use these estimated abilities to estimate a random utility model of contract choice. Our empirical results are supportive of the developed theory.

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Section: Stylized Facts and Preliminary Assumptionsmentioning

confidence: 99%

Sorting into Contests: Evidence from Production Contracts

Wang¹,

Vukina

2019

The B.E. Journal of Economic Analysis &Amp; Policy

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“…The literature is in some ways comprehensive, as various details are discussed. In other ways the literature is limited, as there are only a few participants in the discussion and much of the literature is related to the poultry industry in United States (MARTINEZ, 2002;MAcDONALD et al 2004;MAcDONALD, 2008;TSOULOUHAS, 1999;TSOULOUHAS and VUKINA, 1999;VUKINA, 2001;LEVY and VUKINA, 2002;WU, 2003;LEVY and VUKINA, 2004;LEEGOMONCHAI and VUKINA, 2005;VUKINA, T. and LEEGOMONCHAI, 2006;WU, 2006;ZHENG and VUKINA, 2007;VUKINA and ZHENG, 2007;DUBOIS and VUKINA, 2009;VUKINA and ZHENG, 2011).…”

Section: Informe Gepecmentioning

confidence: 99%

Competitive mode: Vertical control and contractual design in the poultry industry - a comparative study between Brazil and Denmark

Similä¹

2015

IGEPEC

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How do you see the competition in your industry? How do you see your business dealing with the actual situation? Thereare of course several and different answers to these questions, depending on your competitive mode. Maybe it is a choice of market strategy, cost strategy, resource-based strategy, institutional strategy, or my choice of approach,namely a structural strategy. More precisely, I am looking at the economic organization of production, what Williamson (1991) names second-order economizing – regarding the governance structures. We are not doing the mathematics in trying to calculate efficiency, losses or benefits, as we do not have access to that kind of data. In some countries it would be possible to get hold of economic data that would make it possible to calculate possible benefits, while in other countries, companies are not required to go public with their accountings. You will find that companies deliberately tamperwith their financial statements (‘cook their books’), when asked about details in the economy of the production. Going along with the possibilities, what we do want to achieve is a better understanding of why different governance structures are chosen within the same industry. In this article we look at two companies engaged in large-scale industrial production,where one company is located in Brazil and the other in Denmark. The setups of the companies are completely different, where in Brazil strong vertical integration and control is emphasized, this is not equally prominent in Denmark.

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Welfare effects of payment truncation in piece rate tournaments

Wang¹,

Vukina

2016

J. Econ.

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Homogenous and Heterogenous Contestants in Piece Rate Tournaments: Theory and Empirical Analysis

Cited by 5 publications

References 22 publications

Sorting into Contests: Evidence from Production Contracts

Sorting into Contests: Evidence from Production Contracts

Competitive mode: Vertical control and contractual design in the poultry industry - a comparative study between Brazil and Denmark

Welfare effects of payment truncation in piece rate tournaments

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