Competitive Pressure and Job Interview Lying: A Game Theoretical Analysis
We consider a job contest in which candidates go through interviews (cheap talk) and are subject to reference checks. We show how competitive pressure - increasing the ratio of "good" to "bad" type candi- dates - can lead to a vast increase in lying and in some cases make bad hires more likely. As the number of candidates increases, it becomes harder to in- duce truth-telling. The interview stage becomes redundant if the candidates, a priori, know each others' type or the result of their own reference check. Finally, we show that the employer can bene t from committing not to reject all the applicants.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Avenida Lehendakari Aguirre, 83, 48015 Bilbao|
Web page: http://www.dfaeii.ehu.es
More information through EDIRC
|Order Information:|| Postal: Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain|
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.:
- Ding, Wei & Wolfstetter, Elmar G., 2009.
"Prizes and Lemons: Procurement of Innovation under Imperfect Commitment,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
262, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Wei Ding & Elmar G. Wolfstetter, 2011. "Prizes and lemons: procurement of innovation under imperfect commitment," RAND Journal of Economics, RAND Corporation, vol. 42(4), pages 664-680, December.
- Vijay Krishna & John Morgan, 1999.
"A Model of Expertise,"
Game Theory and Information
- Krishna, V. & Morgan, J., 1999. "A Model of Expertise," Papers 206, Princeton, Woodrow Wilson School - Public and International Affairs.
- Vijay Krishna & John Morgan, 1999. "A Model of Expertise," Working Papers 154, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
- Glazer, Jacob & Rubinstein, Ariel, 2001.
"Debates and Decisions: On a Rationale of Argumentation Rules,"
Games and Economic Behavior,
Elsevier, vol. 36(2), pages 158-173, August.
- A. Rubinstein & J. Glazer, . "Debates and Decisions, On a Rationale of Argumentation Rules," Princeton Economic Theory Papers 00s7, Economics Department, Princeton University.
- Glazer, J. & Rubinstein, A., 1997. "Debates and Decisions: On a Rationale of Argumentation Rules," Papers 17-97, Tel Aviv.
- Sher, Itai, 2011. "Credibility and determinism in a game of persuasion," Games and Economic Behavior, Elsevier, vol. 71(2), pages 409-419, March.
- Emir Kamenica & Matthew Gentzkow, 2011. "Bayesian Persuasion," American Economic Review, American Economic Association, vol. 101(6), pages 2590-2615, October.
- Paul Heidhues & Johan Lagerlöf, 2000.
"Hiding Information in Electoral Competition,"
CIG Working Papers
FS IV 00-06, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG), revised Feb 2002.
- Lipman Barton L. & Seppi Duane J., 1995. "Robust Inference in Communication Games with Partial Provability," Journal of Economic Theory, Elsevier, vol. 66(2), pages 370-405, August.
- Jacob Glazer & Ariel Rubinstein, 2004. "On Optimal Rules of Persuasion," Econometrica, Econometric Society, vol. 72(6), pages 1715-1736, November.
- Bourjade, Sylvain & Jullien, Bruno, 2011.
"The roles of reputation and transparency on the behavior of biased experts,"
34813, University Library of Munich, Germany.
- Sylvain Bourjade & Bruno Jullien, 2011. "The roles of reputation and transparency on the behavior of biased experts," RAND Journal of Economics, RAND Corporation, vol. 42(3), pages 575-594, 09.
- Archishman Chakraborty & Rick Harbaugh, 2006.
"Persuasion by Cheap Talk,"
2006-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Oct 2009.
- Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-83, December.
- Paul Milgrom & John Roberts, 1986.
"Relying on the Information of Interested Parties,"
RAND Journal of Economics,
The RAND Corporation, vol. 17(1), pages 18-32, Spring.
When requesting a correction, please mention this item's handle: RePEc:ehu:dfaeii:8770. 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: (Alcira Macías Redondo)
If references are entirely missing, you can add them using this form.