Search results for "Gratitude and reciprocity"
showing 2 items of 2 documents
Selection and Gratitude: Anonymity and gratitude
2018
What kind of candidate is selected into a job when the principal has to appoint a committee to measure the candidate's ability and select a winner through a call specifying a wage for the job? In a model where the principal fixes the wage anticipating the committee's choice, under a rather natural assumption about the committee's objective we find that if the committee takes into account the candidate's gratitude a candidate with less than first best ability will be selected in equilibrium. First best selection is achieved if the committee is anonymous to the candidates. If the committee could also set the wage the first best candidate would be selected, but the principal would be worse off…
Selection by committee: Anonymity and gratitude
2018
Abstract What kind of candidate is selected into a job when the principal has to appoint a committee to measure the candidates’ ability and select a winner? We find that if the committee takes into account the candidate’s gratitude towards them, a candidate with less than first best ability will be selected. A relevant exception may occur if the first best is the overall best candidate. First best selection is always achieved if the committee is anonymous to the candidates. If the committee is not detached enough from the candidates then delegation fares even worse than random selection.