In today's fast-changing, increasingly global and competitive world, the ability of any business to create and sustain competitive advantage is one of the only urging questions. Conventionally, in most businesses, tangible resources are the key factors for improving the business market position....

In many labor markets, e.g., for lawyers, consultants, MBA students, and professional sport players, workers get offered and sign long-term contracts even though waiting could reveal significant information about their capabilities. This phenomenon is called unraveling. We examine the link...