Santos-Pinto, Luís (2003): Positive self-image in tournaments.
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This paper analyzes the implications of worker overestimation of productivity for firms in which incentives take the form of tournaments. Each worker overestimates his productivity but is aware of the bias in his opponent’s self-assessment. The manager of the firm, on the other hand, correctly assesses workers’ productivities and self-beliefs when setting tournament prizes. The paper shows that, under a variety of circumstances, firms make higher profits when workers have positive self-image than if workers do not. By contrast, workers’ welfare declines due to their own misguided choices.
|Item Type:||MPRA Paper|
|Institution:||Universidade Nova de Lisboa|
|Original Title:||Positive self-image in tournaments|
|Keywords:||Self-Image; Tournaments; Behavioral Economics|
|Subjects:||J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts
A - General Economics and Teaching > A1 - General Economics > A12 - Relation of Economics to Other Disciplines
|Depositing User:||Luís Santos-Pinto|
|Date Deposited:||09. May 2007|
|Last Modified:||17. Feb 2013 19:15|
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