Several empirical studies have challenged tournament theory by pointing out that (1) there is considerable pay variation within hierarchy levels, (2) promotion premiums only in part explain hierarchical wage differences and (3) external recruitment is observable on nearly any hierarchy level. We...

The power to coerce workers is important for the efficient operation of hierarchically structured organizations. However, this power can also be used by managers to exploit their subordinates for their own benefit. We examine the relationship between the power to coerce and exploitation in a...

In den vergangenen Jahrzehnten ist ein Trend hin zu flacheren Organisationen mit weniger Hierarchieebenen zu verzeichnen gewesen. Eine Verringerung der Anzahl an Führungsstufen kann sowohl positive als auch negative Auswirkungen auf den wirtschaftlichen Erfolg eines Unternehmens haben. Der...

This study examines how employees internalize differences in social distance between themselves and their managers when they are competing for a reward given by the manager. In an employer/employee relationship, this difference in social distance between the employer and the various employees...

Kirman's ant model has been used to characterize the expectation formation of financial investors who are prone to herding. The model's original version suffers from the problem of N-dependence: its ability to replicate the statistical features of financial returns vanishes once the system size...

One can be independent, or subject to decisions made by others. This paper empirically tests whether individuals attach an intrinsic value to the institutional difference between independence and hierarchy ...

... The purpose of this article is to examine the extent to which German MNCs are characterized by such transnational forms of configuration and coordination, how these two instruments are linked together, and how their application is influenced by situational conditions ...

With adverse selection, diseconomies of scale associated with hierarchies may induce the implementation of a second-best technology. This occurs whenever rents to lower tiers of the hierarchy increase faster than total surplus. This is more likely with longer hierarchies.

In this paper we present a modelling framework for portfolio credit risk which incorporates the dependence between risk-free interest-rates and the default loss process. The contribution in this approach is that - besides the traditional diffusion based covariation between loss intensities and...

The past decades witnessed a broad trend towards flatter organizations with lesshierarchical layers. A reduction of the number of management levels in a corporationcan have both positive and negative effects on firm performance with the neteffect being theoretically unclear ex ante. The present...