Selection And Efficiency In Hierarchical Social Systems
We examine the influence that the degree of stringency in the promotion processes of hierarchical systems has on the outcome of such selections at both the local and global level. We show that any change in the degree of stringency, whether an increase or a decrease, could cause counterintuitive effects. In our analysis, we consider a hierarchical system in which there is a large population of agents at each level. Specifically, this level is a continuum of two different kinds of agents, one with a greater expected performance (i.e., a higher expected success rate) than the other. The agents interact among themselves in groups and in an environment that is stochastic and idiosyncratic (for the group). The social institution promotes agents a posteriori, on the basis of their performance. We consider diverse systems for such promotion processes, with varying degrees of stringency, and study their long-run behaviour patterns. We find that the degree of stringency can be counter-productive for the homogeneity of a population in hierarchical systems. In the process for the selection of agents to be promoted, an increase in stringency beyond a certain point favours, surprisingly enough, agents with lower probabilities of success. Thus, the more stringent the system is, the more heterogeneous the population becomes in the long run, both kinds of agents survives. On the other hand, when the stringency of the system is maintained between two fixed thresholds, the more-successful agents are the only ones who survive. Finally, when the stringency of the system is too low, both homogeneous equilibria (we only consider two kinds of agents) are stable and the dynamics depend on the initial conditions, two basin of attraction appear.
|Date of creation:||Dec 2005|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA|
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
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.:
- Sherwin Rosen, 1985.
"Prizes and Incentives in Elimination Tournaments,"
NBER Working Papers
1668, National Bureau of Economic Research, Inc.
- Harrington, Joseph E, Jr, 1998. "The Social Selection of Flexible and Rigid Agents," American Economic Review, American Economic Association, vol. 88(1), pages 63-82, March.
- Hvide, H.K. & Kristiansen, E.G., 1999.
"Risk Taking in Selection Contests,"
5-99, Tel Aviv.
- Joseph E. Harrington & Jr., 1999. "Rigidity of Social Systems," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 40-64, February.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2005-35. 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: (Departamento de Edición)
If references are entirely missing, you can add them using this form.