Abstract:
This paper investigates the effects of increased power associated with higher office on the quality of agent performance, within the context of a model in which agents care about what others think of them. They care that is about the esteem they enjoy. The object is to conduct a simple comparative static exercise in the "economy of esteem", isolating the various dimensions of the relation between office held and esteem-related incentives to perform in a more estimable way. Copyright 2002 by WWZ and Helbing & Lichtenhahn Verlag AG