Konrad, Kai A.
Tournaments and Multiple Productive Inputs: The Case of Performance Enhancing Drugs.
IZA Discussion Paper, 1844
Volltext auf 'Open Access LMU' nicht verfügbar.
In this paper I consider the desirability of drugs that enhance cognitive abilities in the context
of tournaments that are used as optimal labor contracts as in Lazear and Rosen (1981). Such
drugs reduce the number of voluntary participants in a tournament, but increase individual
and total output. If the tournament is optimally designed, welfare is higher if drugs are
available and used.