Journal Of Economic Theory

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The Limits of Meritocracy

Author	: Mr.John Morgan
Publisher	: International Monetary Fund
Total Pages	: 87
Release	: 2018-11-01
ISBN-10	: 9781484382523
ISBN-13	: 1484382528
Rating	: 4/5 (528 Downloads)

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Book Synopsis The Limits of Meritocracy by : Mr.John Morgan

Download or read book The Limits of Meritocracy written by Mr.John Morgan and published by International Monetary Fund. This book was released on 2018-11-01 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that too much meritocracy, modeled as accuracy of performance ranking in contests, can be a bad thing: in contests with homogeneous agents, it reduces output and is Pareto inefficient. In contests with sufficiently heterogeneous agents, discouragement and complacency effects further reduce the benefits of meritocracy. Perfect meritocracy may be optimal only for intermediate levels of heterogeneity.

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