A Theory of Organizational Dynamics: Internal Politics and Efficiency

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2018
Volume: 10
Issue: 4
Pages: 94-130

Authors (3)

Hongbin Cai (not in RePEc) Hong Feng (not in RePEc) Xi Weng (Peking University)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We consider a three-member organization in which one member retires in each period and the incumbent members vote to admit a candidate to fill the vacancy. Candidates differ in quality and belong to one of two types, and majority-type members share the total rent of that period. We characterize the symmetric Markov equilibria with undominated strategies and compare the long-term welfare among them. Unanimity voting is better than majority voting at promoting long-term welfare. In addition, organizations with a certain degree of incongruity perform better in the long run than either harmonious or very divided organizations.

Technical Details

RePEc Handle
repec:aea:aejmic:v:10:y:2018:i:4:p:94-130
Journal Field
General
Author Count
3
Added to Database
2026-01-29