TY  - BOOK
AU  - Fryer,Roland G.
AU  - Loury,Glenn C.
ED  - National Bureau of Economic Research.
TI  - Categorical Redistribution in Winner-Take-All Markets
T2  - NBER working paper series
PY  - 2003///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - November 2003; Hardcopy version available to institutional subscribers
N2  - This paper constructs a simple model of pair-wise tournament competition to investigate categorical redistribution in winner-take-all markets. We consider two forms of redistribution: category-sighted, where employers are allowed to use categorical information in pursuit of their redistributive goals; and category-blind, where they are not. It is shown that the equilibrium category-sighted redistribution scheme involves a constant handicap given to agents in the disadvantaged category. Equilibrium category-blind redistribution creates a unique semi-separating equilibrium in which a large pool of contestants exerts zero effort, and this pool is increasing in the aggressiveness of the redistribution goal
UR  - https://www.nber.org/papers/w10104
UR  - http://dx.doi.org/10.3386/w10104
ER  -