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α: calibrated so average coauthorship-adjusted count equals average raw count
Abstract A reputation of competence in solving a particular problem is useful only if the problem remains in the future. Hence, there is an incentive to keep the “enemy” alive: An agent may do wrong in his or her job precisely because he or she is competent. The paper develops this mechanism in a general career concerns framework and shows that a tradeoff between reputation and the need for enemies emerges. As a result, agents are induced to produce only moderate effort, and only moderately skilled agents are likely to be appointed. Implications of the analysis are discussed in a multitasking environment with incomplete transparency. Some evidence in principal–agent relationships and the political arena is presented to illustrate our theory.