Question
Incentive conflicts show up in the sports world too. This question looks at three such ways. a) Off-season training requires a lot of time and
Incentive conflicts show up in the sports world too. This question looks at three such ways. a) Off-season training requires a lot of time and effort, yet is vital for many sports, such as soccer and football, for conditioning and industry prevention. First, Describe the basic incentive conflict that arises between the team and the player over off-season training. Then, using a supply/demand type graph for effort, identify the optimal level of off season traning. Finally, explain why an athlete on a long term, guaranteed contract could choose a level of off season training that differs from the optimum. b) In football, playing harder helps your team win, but also leads to more injuries. (To that player for this problem, set aside the injury risk to others) The optimal degree of effort properly balanced the two. This is a potential source of an incentive conflict between the team and the worker. First, describe this incentive conflict. Then determine whether it is likely to be stronger when the player is on a short term contract or a long term contract and explain.
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