STICERD Economic Theory Seminars
Elliot Lipnowski (University of Chicago), joint with Aditya Kuvalekar and Joyee Deb
Thursday 13 June 2019 15:30 - 17:00
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
We study optimal project selection by a firm that must choose between different workers’ preferred projects. The firm faces a basic tradeoff between fostering collaboration among its employees and efficiently adapting its decisions to its circumstances. If the firm commits to choosing the project which is most profitable ex-post, it undermines its employees’ motive to collaborate, causing ex-ante inefficiency. We solve for the firm’s optimal policy. It entails an early phase of intense competition, followed by a permanent regime of collaboration. In service to ex-ante optimality, arbitrarily severe ex-post inefficiencies must be tolerated.
Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, ONLINE or ONLINE AND IN PERSON at the same time.
Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.
For further information please contact Annie-Rose Nicholas by email: firstname.lastname@example.org.
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