Lazear’s Stochastic Interpretation of the Peter Principle: An Empirical Examination Based on NBA-Data
Dilger, Alexander
Research article (book contribution)Abstract
The Peter Principle says that people are promoted to their level of incompetence. There are several possible explanations for this. Lazear (2004) 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.
Details about the publication
Editors: Prinz, Joachim; Dilger, Alexander; Deutscher, Christian
Book title: Personnel Economics in Sports and Incentive Management: Present Findings and New Challenges in a Dynamic World; Festschrift für Prof. Dr. Bernd Frick
Page range: 49-58
Publisher: Nomos
Place of publication: Baden-Baden
Status: Published
Release year: 2025
ISBN: 978-3-7560-3323-2; 978-3-7489-6257-1
Link to the full text: https://www.nomos-shop.de/de/p/personnel-economics-in-sports-and-incentive-management-gr-978-3-7560-3323-2
Keywords: NBA; Performance; Peter Principle; Sports Economics; Stochastic; Tournament
Authors from the University of Münster
| Dilger, Alexander | Institute for Organisational Economics (IO) |