Affirmative Action Can Increase Effort

Previous theoretical work examining labor tournaments concluded that an affirmative action program will always reduce the effort supplied by agents, thereby reducing output and profit for the tournament administrator; however, experimental results sometime contradict this conclusion. In the context of a labor tournament I demonstrate that there exists an affirmative action program that induces both types of agents to provide greater effort. In some instances the effort maximizing affirmative action program will also give both types of agents an equal chance of winning the tournament.