Incentives and tournaments in public organizations

I’m pleased to announce that my new paper on tournaments and incentives will appear in Perspectives on Public Management and Governance. Here’s an abstract:

Advances in economic theory help us rethink the traditional public administration concern for accountability and performance in government. Reforms in government have concentrated on organizational designs that flow from piece-rate approaches to employee compensation, but they have largely ignored the prospects for incentive-compatibility within traditional personnel systems. There are important reasons to believe that competitive tournaments in public organization hierarchies, perhaps implemented in promotion systems, could be more effective than the pay-for-performance systems often called for in traditional principal-agent approaches, and therefore can be a useful component of the design of bureaucracies. More importantly, knowledge about tournaments in organizations helps us reconsider key institutional features of public bureaucracies.

Please reach out to me at aw@uga.edu if you would like a preprint.

Leave a Reply

Your email address will not be published. Required fields are marked *