TRAVEL INCENTIVES AS TOURNAMENT COMPENSATION -- PROBLEMS OF CONTESTANT HETEROGENEITY AND SOLUTIONS.

The theoretical literature on organizational rewards underlines the effectiveness of tournament compensation systems, but very few is known about the implementation of tournament reward structures in real business organizations. We theoretically analyse incentive travel sales contests as tournament compensation systems and then present empirical evidence on the effectiveness of tournament structures, the problems caused by contestant heterogeneity and the organizational attempts to reduce contestant heterogeneity and thus re-install tournament incentives. [ABSTRACT FROM AUTHOR]

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