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Abstract

Within an organization, a bounded rational principal organizes a promotion test based on a sequence of test regarding candidates' relative performances. We assume the principal to suffer from limited ability to rank the performances, only identifying the best in each test. Furthermore, he satisfies the expected gains do not decreases whit the information generated by additional tests. Then, mentoring is shown to improve the information about candidates' ability when the principal offers help to the current best candidate provided by a manager promoted after a similar contest.

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File URL: http://www.sciencedirect.com/science/article/B6V8F-430XNJK-1/2/9459d83c423253f22425960dc22d9450
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 45 (2001)
Issue (Month): 2 (June)
Pages: 113-132

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Handle: RePEc:eee:jeborg:v:45:y:2001:i:2:p:113-132

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Find related papers by JEL classification:

• D10 - Microeconomics - - Household Behavior - - - General
• D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
• L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

References

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1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
   
   • Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
2. Meyer, Margaret A, 1991. "Learning from Coarse Information: Biased Contests and Career Profiles," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 15-41, January.
3. Laband, David N. & Piette, Michael J., 1995. "Team production in economics: division of labor or mentoring?," Labour Economics, Elsevier, vol. 2(1), pages 33-40, March.
4. Drago, Robert & Turnbull, Geoffrey K., 1991. "Competition and cooperation in the workplace," Journal of Economic Behavior & Organization, Elsevier, vol. 15(3), pages 347-364, May.

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Cited by:

1. Arai, Mahmood & Bursell, Moa & Nekby, Lena, 2008. "Between Meritocracy and Ethnic Discrimination: The Gender Difference," SULCIS Working Papers 2008:2, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
   
   • Arai, Mahmood & Moa Bursell , Moa & Nekby, Lena, 2008. "Between Meritocracy and Ethnic Discrimination: The Gender Difference," Research Papers in Economics 2008:4, Stockholm University, Department of Economics.
   • Arai, Mahmood & Bursell, Moa & Nekby, Lena, 2008. "Between Meritocracy and Ethnic Discrimination: The Gender Difference," IZA Discussion Papers 3467, Institute for the Study of Labor (IZA).

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