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Are 18 holes enough for Tiger Woods?

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  • Gürtler, Oliver

Abstract

This paper addresses the selection problem in promotion tournaments. I consider a situation with heterogeneous employees and ask whether an employer might be interested in repeating a promotion tournament. On the one hand, this yields a reduction in uncertainty over the employees` abilities. On the other hand, there are costs if a workplace stays vacant.

Suggested Citation

  • Gürtler, Oliver, 2005. "Are 18 holes enough for Tiger Woods?," Bonn Econ Discussion Papers 5/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:52005
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    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Margaret A. Meyer, 1991. "Learning from Coarse Information: Biased Contests and Career Profiles," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 15-41.
    3. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    4. Green, Jerry R & Stokey, Nancy L, 1983. "A Comparison of Tournaments and Contracts," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 349-364, June.
    5. Derek Clark & Christian Riis, 2001. "Rank-order tournaments and selection," Journal of Economics, Springer, vol. 73(2), pages 167-191, June.
    6. Hvide, Hans K. & Kristiansen, Eirik G., 2003. "Risk taking in selection contests," Games and Economic Behavior, Elsevier, vol. 42(1), pages 172-179, January.
    7. Barry J. Nalebuff & Joseph E. Stiglitz, 1983. "Prices and Incentives: Towards a General Theory of Compensation and Competition," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 21-43, Spring.
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    Cited by:

    1. repec:lan:wpaper:3570 is not listed on IDEAS
    2. B Frick & R Simmons, 2007. "The allocation of rewards in athletic contests," Working Papers 591160, Lancaster University Management School, Economics Department.
    3. James W. Bono, 2008. "Sales contests, promotion decisions and heterogeneous risk," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 371-382.
    4. repec:lan:wpaper:3963 is not listed on IDEAS
    5. repec:lan:wpaper:3678 is not listed on IDEAS

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    More about this item

    Keywords

    Promotion tournament; selection; heterogeneous employees; repetition;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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