Competing for talents
Two organizations compete for high quality agents from a fixed population of heterogeneous qualities by designing how to distribute their resources among members according to their quality ranking. The peer effect induces both organizations to spend the bulk of their resources on higher ranks in an attempt to attract top talents that benefit the rest of their membership. Equilibrium is asymmetric, with the organization with a lower average quality offering steeper increases in resources per rank. High quality agents are present in both organizations, while low quality agents receive no resources from either organization and are segregated by quality into the two organizations. A stronger peer effect increases the competition for high quality agents, resulting in both organizations concentrating their resources on fewer ranks with steeper increases in resources per rank, and yields a greater equilibrium difference in average quality between the two organizations.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 147 (2012)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/622869|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-133, February.
- Bernhardt, Dan & Scoones, David, 1993.
"Promotion, Turnover, and Preemptive Wage Offers,"
American Economic Review,
American Economic Association, vol. 83(4), pages 771-791, September.
- Ettore Damiano & Hao Li & Wing Suen, 2010.
"First In Village Or Second In Rome?,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 263-288, 02.
- Ettore Damiano & Hao Li & Wing Suen, 2004. "First in Village or Second in Rome," Working Papers tecipa-221, University of Toronto, Department of Economics.
- Damiano, Ettore & Li, Hao & Suen, Wing, 2005. "First in village or second in Rome?," Microeconomics.ca working papers damiano-05-01-25-10-14-13, Vancouver School of Economics, revised 26 Jan 2005.
- Caillaud, Bernard & Jullien, Bruno, 2003. " Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-328, Summer.
- Andrew Postlewaite, "undated".
""The Social Basis of Interdependent Preferences'',"
CARESS Working Papres
97-14, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 777-803.
- Espen R. Moen & Åsa Rosén, 2004.
"Does Poaching Distort Training?,"
Review of Economic Studies,
Oxford University Press, vol. 71(4), pages 1143-1162.
- Edward P. Lazear, 1984. "Raids and Offermatching," NBER Working Papers 1419, National Bureau of Economic Research, Inc.
- Bruce Sacerdote, 2000.
"Peer Effects with Random Assignment: Results for Dartmouth Roommates,"
NBER Working Papers
7469, National Bureau of Economic Research, Inc.
- Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 681-704.
- Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
- Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-652, September.
- Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
- Tranaes, Torben, 2001. "Raiding Opportunities and Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 773-798, October.
When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:147:y:2012:i:6:p:2190-2219. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.