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Learning by Helping: A Bounded Rationality Model of Mentoring

Author

Listed:
  • Arai, Mahmood

    () (Dept. of Economics, Stockholm University)

  • Billot, Antoine

    (ERMES, Université Panthéon-Assas, Paris II)

  • Lanfranchi, Joseph

    (ERMES, Université Panthéon-Assas, Paris II)

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.

Suggested Citation

  • Arai, Mahmood & Billot, Antoine & Lanfranchi, Joseph, 1999. "Learning by Helping: A Bounded Rationality Model of Mentoring," Research Papers in Economics 1999:14, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:1999_0014
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    References listed on IDEAS

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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 777-795, December.
    2. Margaret A. Meyer, 1991. "Learning from Coarse Information: Biased Contests and Career Profiles," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 15-41.
    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. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-330, July.
    5. 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.

    More about this item

    Keywords

    Mentoring; Selection; Contests; Bounded Rationality;

    JEL classification:

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

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