Managers as administrators: reputation and incentives

Abstract: In many firms managers play the role of administrators, adding value by successfully implementing solutions to problems that the firm may face. We model the career concerns of administrators. When administrators receive the same in formation but differ in their administrative abilities, we show that they may not choose tasks that are appropriate for the problems they face. In particular, in any pure strategy equilibrium of our model, administrators do not condition their behavior on any of their private information, despite the fact that they are risk neutral and know their administrative ability. We thus identify a novel source of incentive conflicts in firms. We also examine the robustness of these results to various extensions

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
Postprint
begutachtet (peer reviewed)
In: Journal of Economic Behavior & Organization ; 70 (2009) 1-2 ; 155-163

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(when)
2009
Creator
Dasgupta, Amil
Sarafidis, Yianis

DOI
10.1016/j.jebo.2008.12.009
URN
urn:nbn:de:0168-ssoar-282956
Rights
Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
25.03.2025, 1:46 PM CET

Data provider

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Associated

  • Dasgupta, Amil
  • Sarafidis, Yianis

Time of origin

  • 2009

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