Bonatti, Alessandro; Hörner, Johannes - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 1, pp. 425-475
This paper examines the interplay between career concerns and market structure. Ability and effort are complements: effort increases the probability that a skilled agent achieves a one-time breakthrough. Wages are based on assessed ability and on expected output. Effort levels at different times...