Endogenous Favoritism in Organizations
Illoong Kwon ()
The B.E. Journal of Theoretical Economics, 2006, vol. 6, issue 1, 26
Abstract:
This paper shows that favoritism can arise endogenously as an optimal decision rule in a symmetric model with an ex-ante impartial principal. Furthermore, favoritism dominates fairness specifically when the favorite promotes his own idea and ignores the other's idea so that the non-favorite loses motivation. Our model also provides new insights on hierarchical communication structure and group authority.
Keywords: favoritism; fairness; communication; delegation (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (4)
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DOI: 10.2202/1534-598X.1273
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