The “tournament” or “winner take all” labor market is where the laborer comes in at an entry level position at standard wages in the hope to make it to the top. The labor must prove themselves by working long hours and better than above average to succeed or move ahead. When the worker can prove they are the best worker they have a change to move up a level. Crack cocaine dealing is the example that Levitt and Dubner came up with in their book, Freakonomics.
Dealing crack cocaine is a “winner take all” or tournament labor business where there are many street salesman who