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Internes Benchmarking und relative Leistungsturniere

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  • Matthias Kräkel

    (Rheinische Friedrich-Wilhelms-Universität Bonn)

Abstract

Summary We can argue that there is a considerable jog-trot problem when using internal benchmarking. This problem can be solved by complementary incentive systems. Rank-order tournaments constitute an incentive system that has ideal prerequisites in the case of internal benchmarking, but also conflicts with the main objective of internal benchmarking. Thus, alternative solutions are required. It is shown that the best solution consists of the exclusive use of rank-order tournaments to select successful routines in the sense of Nelson/Winter (1982). As a byproduct it is shown that rank-order tournaments do not suffer from a serious collusion problem, because such collusions are profitable but not stable in an equilibrium sense.

Suggested Citation

  • Matthias Kräkel, 1998. "Internes Benchmarking und relative Leistungsturniere," Schmalenbach Journal of Business Research, Springer, vol. 50(11), pages 1010-1028, November.
    • Handle: RePEc:spr:sjobre:v:50:y:1998:i:11:d:10.1007_bf03371545
    DOI: 10.1007/BF03371545
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    References listed on IDEAS

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