摘要:Grower discontent with tournaments as mechanisms for settling poultry contracts canlargely be attributed to the group composition risk that tournaments impose on growers.This paper focuses on the welfare effects of a widely advocated regulatory proposal toprevent integrator companies from using tournaments and replace them with schemes thatcompare performance to a fixed standard. The analysis shows that whereas themandatory replacement of tournaments with fixed performance standards, absent anyother rules, can decrease grower income insurance without raising welfare, replacingtournaments with fixed performance standards can simultaneously increase incomeinsurance and welfare, provided that the piece rate is correctly specified.