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Endogenous Organizational Restructuring: Status, Productivity, & Meritocratic Dynamics

Author

Listed:
  • Ashutosh Thakur

    (Stanford Graduate School of Business and University of Cologne)

  • Jonathan Bendor

    (Stanford Graduate School of Business)

Abstract

We model the dynamics of endogenous organizational restructuring, where those being assigned positions in an organization can themselves lobby for who gets which position. Internal labor market changes depend on how much individuals value their own status in the organization, the organizational output, their friends' welfare, and the quality of their own departmental colleagues. Meritocratic assignments are reached with probability one when agents value organizational output even with epsilon weight, provided friend networks and departments are not too large. We also characterize the effects of various voting rules, agendas, and specializations on the paths and the stability of organizational structures.

Suggested Citation

  • Ashutosh Thakur & Jonathan Bendor, 2021. "Endogenous Organizational Restructuring: Status, Productivity, & Meritocratic Dynamics," ECONtribute Discussion Papers Series 084, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:084
    as

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    File URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_084_2021.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    organizational reform; assignment; voting; institutions; meritocracy; status;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

    NEP fields

    This paper has been announced in the following NEP Reports:

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