POSITIVE SELF-IMAGE IN TOURNAMENTS
This article analyzes the implications of worker overestimation of productivity for firms in which incentives take the form of tournaments. Each worker overestimates his productivity but is aware of the bias in his opponent's self-assessment. The manager of the firm, on the other hand, correctly assesses workers' productivities and self-beliefs when setting tournament prizes. The article shows that, under a variety of circumstances, firms can benefit from worker positive self-image. The article also shows that worker positive self-image can improve welfare in tournaments. In contrast, workers' utility declines due to their own misguided choices. Copyright (2010) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Year of publication: |
2010
|
---|---|
Authors: | Santos-Pinto, Luís |
Published in: |
International Economic Review. - Department of Economics. - Vol. 51.2010, 2, p. 475-496
|
Publisher: |
Department of Economics |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Dell'Era, Michele, (2018)
-
The role of self-confidence in teamwork: Experimental evidence
Bruhin, Adrian, (2023)
-
Tacit collusion under fairness and reciprocity
çIriðs, Doruk, (2013)
- More ...