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profitability (productivity) of his team and of the promotion-seeking efforts of his employees. Our first main result clarifies the … examine the effect of the employees' productivity on their probability of promotion and on the extent of the resources wasted … candidate for promotion) is less likely to be promoted and the conditions under which higher employee's productivity results in …
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Splitting leagues or tournaments seems to be puzzling when agents are homogeneous and splitting leads to a negative competition effect. However, it can be shown that the principal can nevertheless benefit from splitting. First, splitting can be used as a divide-and-rule strategy by the principal...
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