Lazear’s Stochastic Interpretation of the Peter Principle: An Empirical Examination based on NBA-Data

Dilger Alexander


Zusammenfassung
The Peter Principle says that people are promoted to their level of incompetence. There are several possible explanations for this. Lazear (2001) puts forward a stochastic interpretation of the Peter Principle, which states that promoted individuals might have had some luck that contributed to their promotions and disappears afterwards on the average. This explanation of falling productivity after promotions is analysed in this paper, applied to tournaments with relative performance measurements and empirically tested using data from the NBA.

Schlüsselwörter
NBA; performance; Peter Principle; sports economics; stochastic; tournament



Publikationstyp
Sonstige wissenschaftliche Veröffentlichung

Publikationsstatus
Veröffentlicht

Jahr
2003

Band
03-07

Reihe
University of Vienna Organization and Planning Working Paper

Ort
Wien

Sprache
Englisch

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