Dynamically Sabotage-Proof Tournaments
研究破坏行为对激励合同设计的影响，发现破坏可能使最优努力无法实现，并提出快速通道和延迟选择两种方案来规避该问题。
This article explores the consequences of sabotage for the design of incentive contracts. The possibility of sabotage gives rise to a dynamic concern, similar to the Ratchet effect, which distorts the agents' incentives. We first show that the mere possibility of sabotage may make it impossible to implement the first-best effort, and we then offer two distinct incentive schemes, fast track and late selection, to circumvent this problem. The present model offers a mechanism through which these two schemes arise in a unified framework.