Positive self-image in tournaments

Luis Santos-Pinto ()

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: This paper analyzes the implications of worker overestimation of productivity for firms in which incentives take the form of tournaments. Each worker overestimates his productivity but is aware of the bias in his opponent s self-assessment. The manager of the firm, on the other hand, correctly assesses workers productivities and self-beliefs when setting tournament prizes. The paper shows that, under a variety of circumstances, firms make higher profits when workers have positive self-image than if workers do not. By contrast, workers welfare declines due to their own misguided choices.

Keywords: Self-image; tournaments; behavioral economics (search for similar items in EconPapers)
JEL-codes: A12 J41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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https://run.unl.pt/bitstream/10362/11857/1/wp510.pdf

Related works:
Journal Article: POSITIVE SELF-IMAGE IN TOURNAMENTS (2010)
Working Paper: Positive self-image in tournaments (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:unlfep:wp510

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