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Reputation and the “need for enemies”

Author

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  • Maxime Menuet

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Patrick Villieu

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

Abstract

A reputation of competence in solving a particular problem is useful only if the problem remains in the future. Hence, there is an incentive to keep the “enemy” alive: An agent may do wrong in his or her job precisely because he or she is competent. The paper develops this mechanism in a general career concerns framework and shows that a tradeoff between reputation and the need for enemies emerges. As a result, agents are induced to produce only moderate effort, and only moderately skilled agents are likely to be appointed. Implications of the analysis are discussed in a multitasking environment with incomplete transparency. Some evidence in principal–agent relationships and the political arena is presented to illustrate our theory.
(This abstract was borrowed from another version of this item.)

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  • Maxime Menuet & Patrick Villieu, 2020. "Reputation and the “need for enemies”," Post-Print hal-02876593, HAL.
    • Handle: RePEc:hal:journl:hal-02876593
    DOI: 10.1007/s00199-020-01289-7
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-02876593v1
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    Cited by:

    1. Maxime Menuet & Hugo Oriola & Patrick Villieu, 2024. "Do conservative central bankers weaken the chances of conservative politicians?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(4), pages 681-738, June.

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    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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