Status Classification by Lottery Contests
Speaker
Aner Sela
Date
22/11/2022 - 12:30 - 11:00Add To Calendar
2022-11-22 11:00:00
2022-11-22 12:30:00
Status Classification by Lottery Contests
We study the optimal design of status classifications in organizational structures under the assumption that agents in a lottery (Tullock) contest care about their relative position. We assume that there are two status categories and a designer who determines their sizes in order to maximize the agents' total performance. We prove that the optimal partition contains more than one agent in each status category if the number of agents is larger than three, and that the top status category contains more agents than the bottom one. This result demonstrates that in order to maximize the agents' total output the top status categories should not be exclusive to a small number of agents.
BIU Economics common room
אוניברסיטת בר-אילן - Department of Economics
Economics.Dept@mail.biu.ac.il
Asia/Jerusalem
public
Place
BIU Economics common room
Affiliation
Ben Gurion University
Abstract
We study the optimal design of status classifications in organizational structures under the assumption that agents in a lottery (Tullock) contest care about their relative position. We assume that there are two status categories and a designer who determines their sizes in order to maximize the agents' total performance. We prove that the optimal partition contains more than one agent in each status category if the number of agents is larger than three, and that the top status category contains more agents than the bottom one. This result demonstrates that in order to maximize the agents' total output the top status categories should not be exclusive to a small number of agents.
Last Updated Date : 10/11/2022
