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Competing for Talents

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  • Ettore Damiano
  • Hao Li
  • Wing Suen

Abstract

Though individuals prefer to join groups with high quality peers, there are advantages to being high up in the pecking order within a group if higher ranked members of a group have greater access to the group's resources. When two organizations try to attract members from a ¯xed population of heterogeneous agents, how resources are distributed among the members according to their rank a®ects how agents choose between the organizations. Competition between the two organizations has implications for both the equilibrium sorting of agents and the way resources are distributed within each organization. To compete more intensely for the more talented agents, both organizations are selective and give no resources to their low ranks. In both organizations, higher ranks are rewarded with more resources, with a greater rate of increase in the organization that has a lower average quality in equilibrium.

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Bibliographic Info

Paper provided by Chinese University of Hong Kong, Department of Economics in its series Departmental Working Papers with number _177.

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Date of creation: Feb 2006
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Handle: RePEc:chk:cuhked:_177

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Cited by:
  1. Jan Eeckhout, 2012. "Matching Information," 2012 Meeting Papers 835, Society for Economic Dynamics.
  2. Tomasz Kulisiewicz, 2013. "Redukcja obciążeń administracyjnych a wybrane zagadnienia informatyzacji administracji publicznej," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 29, pages 131-150.

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