Header

UZH-Logo

Maintenance Infos

Belief precision and effort incentives in promotion contests


Miklos-Thal, Jeanine; Ullrich, Hannes (2015). Belief precision and effort incentives in promotion contests. Economic Journal, 125(589):1952-1963.

Abstract

The career concerns literature predicts that incentives for effort decline as beliefs about ability become more precise (Holmstrom, 1982/1999). In contrast, we show that effort can increase with belief precision when agents compete for promotions to better paid jobs that are assigned on the basis of perceived abilities. In this case, an intermediate level of precision provides the strongest incentive for effort, with effort increasing (decreasing) when beliefs are less (more) precise.

Abstract

The career concerns literature predicts that incentives for effort decline as beliefs about ability become more precise (Holmstrom, 1982/1999). In contrast, we show that effort can increase with belief precision when agents compete for promotions to better paid jobs that are assigned on the basis of perceived abilities. In this case, an intermediate level of precision provides the strongest incentive for effort, with effort increasing (decreasing) when beliefs are less (more) precise.

Statistics

Citations

1 citation in Web of Science®
1 citation in Scopus®
Google Scholar™

Altmetrics

Downloads

9 downloads since deposited on 24 Oct 2014
3 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2015
Deposited On:24 Oct 2014 12:49
Last Modified:17 Sep 2016 00:00
Publisher:Wiley-Blackwell Publishing, Inc.
ISSN:0013-0133
Publisher DOI:https://doi.org/10.1111/ecoj.12162
Other Identification Number:merlin-id:9946

Download

Download PDF  'Belief precision and effort incentives in promotion contests'.
Preview
Content: Accepted Version
Filetype: PDF
Size: 358kB
View at publisher