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Hierarchical Organization and Performance Inequality: Evidence from Professional Cycling

Author

Listed:
  • Bertrand Candelon

    (Department of economics, Maastricht University)

  • Arnaud Dupuy

    (Corresponding address: ROA and department of economics, Maastricht University PO Box 616, NL-6200 MD, The Netherlands. Email: a.dupuy@roa.unimaas.nl)

Abstract

This paper proposes an equilibrium theory of the organization of work in an economy with an implicit market for productive time. In this market, agents buy or sell productive time. This implicit mar- ket gives rise to the formation of teams, organized in hierarchies with one leader (buyer) at the top and helpers (sellers) below. Relative to autarky, hierarchical organization leads to higher within and between team payo¤s/productivity inequality. This prediction is tested empir- ically in the context of professional road cycling. We show that the observed rise in performance inequality in the peloton since the 1970s is merely due to a rise in help intensity within team and consistent with a change in the hierarchical organization of teams.

Suggested Citation

  • Bertrand Candelon & Arnaud Dupuy, 2012. "Hierarchical Organization and Performance Inequality: Evidence from Professional Cycling," Working Papers 2012/12, Maastricht School of Management.
  • Handle: RePEc:msm:wpaper:2012/12
    as

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    File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2012-12.pdf
    File Function: First version, 2012
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Edoardo Ciscato & Alfred Galichon & Marion Gousse, 2014. "Like Attract Like? A Structural Comparison of Homogamy Across Same-Sex and Different-Sex Households," Sciences Po publications info:hdl:2441/10gq8jbaid8, Sciences Po.
    2. Arnaud Dupuy, 2015. "The Assignment of Workers to Tasks with Endogenous Supply of Skills," Economica, London School of Economics and Political Science, vol. 82(325), pages 24-45, January.
    3. repec:ipg:wpaper:2014-536 is not listed on IDEAS
    4. repec:ipg:wpaper:2014-517 is not listed on IDEAS
    5. repec:ipg:wpaper:2014-506 is not listed on IDEAS
    6. Sebastian Bervoets & Bruno Decreuse & Mathieu Faure, 2014. "A Renewed Analysis of Cheating in Contests: Theory and Evidence from Recovery Doping," AMSE Working Papers 1441, Aix-Marseille School of Economics, Marseille, France, revised Jun 2015.
    7. repec:ipg:wpaper:2014-537 is not listed on IDEAS
    8. repec:ipg:wpaper:2014-501 is not listed on IDEAS
    9. repec:ipg:wpaper:2014-573 is not listed on IDEAS
    10. repec:ipg:wpaper:2014-520 is not listed on IDEAS
    11. repec:ipg:wpaper:2014-532 is not listed on IDEAS
    12. repec:ipg:wpaper:2014-488 is not listed on IDEAS
    13. Jean-François Mignot, 2016. "An Economic History of the Tour de France, 1903-2015," Post-Print halshs-01354233, HAL.

    More about this item

    Keywords

    Hierarchical organization; productive time; helping time; inequality; professional cycling;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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