Intergenerational conflicts of interest and seniority systems in organizations

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2008
Volume: 65
Issue: 3-4
Pages: 757-767

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

This paper studies the role of a proposed seniority system in an organization. The organization consists of at least three overlapping generations of short-lived members and chooses either a shortsighted or a farsighted action in each period. This results in intergenerational conflicts of interest. The old generation desires to obtain an immediate profit, while the middle and young generations have incentives to invest for future profits. We use a model of infinitely repeated games and demonstrate that the seniority system solves these conflicts in the sense that the farsighted action profile is sustainable in equilibrium.

Technical Details

RePEc Handle
repec:eee:jeborg:v:65:y:2008:i:3-4:p:757-767
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24