Reputation and the “need for enemies”

B-Tier
Journal: Economic Theory
Year: 2021
Volume: 72
Issue: 4
Pages: 1049-1089

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:spr:joecth:v:72:y:2021:i:4:d:10.1007_s00199-020-01289-7
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26