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The Equilibrium Level of Rigidity in a Hierarchy

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  • Joseph E Harrington Jr

Abstract

A hierarchy is considered in which those agents who perform better advance to higher levels When agents are heterogeneous and endowed with simple behavioral rules Harrington (1998a) showed that agents at high levels tend to be rigid in the sense that their behavior is unresponsive to their environment relative to agents at low levels In the current paper agents are homogeneous but sophisticated as their behavior is required to be consistent with a subgame perfect equilibrium Agents at high levels are found instead to be flexible relative to agents at low levels

Suggested Citation

  • Joseph E Harrington Jr, 1999. "The Equilibrium Level of Rigidity in a Hierarchy," Economics Working Paper Archive 398, The Johns Hopkins University,Department of Economics.
  • Handle: RePEc:jhu:papers:398
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    References listed on IDEAS

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    1. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    2. 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.
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    Cited by:

    1. Inderst, Roman & Muller, Holger M. & Warneryd, Karl, 2007. "Distributional conflict in organizations," European Economic Review, Elsevier, vol. 51(2), pages 385-402, February.
    2. Jose A. Garcia-Martinez, 2010. "The Role of Selectivity in Hierarchical Social Systems," Working Papers 2010-05, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    3. Glazer, A. & Kanniainen, V., 2000. "Term Length and the Quality of Appointment," Papers 00-04, California Irvine - School of Social Sciences.
    4. Garcia-Martinez, Jose A., 2010. "Selectivity in hierarchical social systems," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2471-2482, November.
    5. Callander, Steven & Wilkie, Simon, 2007. "Lies, damned lies, and political campaigns," Games and Economic Behavior, Elsevier, vol. 60(2), pages 262-286, August.
    6. Garcia-Martinez, Jose A., 2012. "An Unexpected Role of Local Selectivity in Social Promotion," MPRA Paper 36324, University Library of Munich, Germany.

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