Abstract:What kind of candidate is selected into a job when the principal has to appoint a committee to measure the candidate's ability and select a winner through a call specifying a wage for the job? In a model where the principal xes the wage anticipating the committee's choice, under a rather natural assumption about the committee's objective we nd that if the committee takes into account the candidate's gratitude a candidate with less than rst best ability will be selected in equilibrium. First best selection is a… Show more
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