Risk-taking in subjective promotion tournaments

By:

KWON, Iloong

Material type: Text

TextSeries: Applied Economics Letters ; Volume , number ,New York Taylor & Springer 2013Content type:

text

Media type:

unmediated

Carrier type:

volume

Subject(s):

Online resources:

Click here to access online

Summary: This article considers a promotion tournament where the winner is decided by the principal's posterior belief about the agents’ abilities, called a subjective promotion tournament. If the agents can choose the risk of their performance as well as their effort, this article shows that such a subjective tournament can be better than an objective tournament where the winner is decided by the agents’ verifiable performance measures only. This is because the subjective tournament leads to lower uncertainty about the agents’ abilities and a higher level of agents’ effort, thereby providing better sorting and incentive effects.

Reviews from LibraryThing.com:

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Current library	Call number	Vol info	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB1.A666 APP (Browse shelf(Opens below))	Vol.20 , No.13 - 15 (Oct 2013)	Not for loan	For In House Use Only

Browsing Main Library shelves, Shelving location: - Special Collections Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	HB1.A666 APP Volatility spillovers in commodity markets	HB1.A666 APP What explains consumption and money holding in the very short-run? evidence from checking account data	HB1.A666 APP Is unsystematic risk priced in bank loan contracts?	HB1.A666 APP Risk-taking in subjective promotion tournaments	HB1.A666 APP The effect of the great recession on foreign direct investment global empirical evidence with a gravity approach	HB1.A666 APP Numerical method to calculate Gini coefficient from limited data of subgroups	HB1.A666 APP Common change-points in long-term UK bond yields, 1870–1914 a piecewise linear trends approach	Next

This article considers a promotion tournament where the winner is decided by the principal's posterior belief about the agents’ abilities, called a subjective promotion tournament. If the agents can choose the risk of their performance as well as their effort, this article shows that such a subjective tournament can be better than an objective tournament where the winner is decided by the agents’ verifiable performance measures only. This is because the subjective tournament leads to lower uncertainty about the agents’ abilities and a higher level of agents’ effort, thereby providing better sorting and incentive effects.

There are no comments on this title.

to post a comment.

here