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• W3124275723 abstract "This paper shows that introducing status concerns into a tournament model has substantial implications for the provision of incentives. We emphasize the role of reference groups and determine the optimal number of winners and losers in tournaments. To compensate employees for the disutility of low status, a profit-maximizing employer may be reluctant to demote employees and instead reward workers through promotions. This rationalizes the prevalence of compensation systems which reward winners without explicitly identifying losers. Differences in ambition and ability affect contestants’ efforts and may result in inefficient promotion outcomes. We analyze how to mitigate these inefficiencies when managing a diverse workforce by using mixed and segregated tournaments." @default.
• W3124275723 created "2021-02-01" @default.
• W3124275723 creator A5007189314 @default.
• W3124275723 creator A5024401559 @default.
• W3124275723 date "2010-08-01" @default.
• W3124275723 modified "2023-09-27" @default.
• W3124275723 title "Interpersonal comparison, status and ambition in organizations" @default.
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• W3124275723 doi "https://doi.org/10.1016/j.jebo.2010.03.019" @default.
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