Information and Effort: The European Soccer League

Businesses strive to make their employees more productive. Assuming that employees' costs stay unchanged, following an increase in productivity the firm can either produce the same level of output with lower costs; or increase its output without incurring higher costs. That is, an increase in the productivity of employees, that does not change the employees' costs, has a direct positive effect on firms' profits. One can think of many different ways to improve productivity: better machinery, automation,