Job Promotion Tournaments and Imperfect Recall

Oliver Gürtler

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: In this paper, a promotion tournament is considered, where, at the beginning of the tournament, it is unknown how long the tournament lasts. Further, the promotion decision is based on the assessments of a supervisor with imperfect recall. In line with psychological research, the supervisor is assumed to either value early or recent impressions more strongly. It is shown that effort may increase or decrease, as the probability of promotion in a certain period gets higher. The single effects determining the sign of the effort change oftentimes depend on how the supervisor processes information.

Keywords: Promotion Tournament; Promotion Probability; Imperfect Recall (search for similar items in EconPapers)
JEL-codes: J33 M51 M52 (search for similar items in EconPapers)
Date: 2006-05
New Economics Papers: this item is included in nep-spo
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Persistent link: https://EconPapers.repec.org/RePEc:trf:wpaper:112

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