The Problem of the Principal-Agent and Promotion Tournaments in Religious Organizations: Choosing the Pope

51 Pages Posted: 21 Feb 2013

See all articles by Lívio Oliveira

Lívio Oliveira

Departamento de Economia e Estatística da Secretaria de Planejamento, Governança e Gestão do Rio Grande do Sul

Giacomo Balbinotto Neto

Federal University of Rio Grande do Sul (UFRGS)

Date Written: February 20, 2013

Abstract

This paper shows an application of Promotion Tournaments to religious organizations, which is appropriate, especially in the case of highly ranked institutions such as the Catholic Church. With this objective, we seek to verify the suitability of the use Tournaments in religious organizations, regarding the optimal structure of contracts in order to select, as well as, to promote clerics. Two models are addressed, modified from the originals, through the inclusion of psychic income, both with two clerics with homogeneous skills. Finally, we discuss the advantages and limitations of the Tournaments applied to religious organizations, including its risks and distortions therein.

Keywords: Religious Organizations, Catholic Church, Tournaments

JEL Classification: J33, M5

Suggested Citation

Oliveira, Livio and Neto, Giacomo Balbinotto, The Problem of the Principal-Agent and Promotion Tournaments in Religious Organizations: Choosing the Pope (February 20, 2013). Available at SSRN: https://ssrn.com/abstract=2221280 or http://dx.doi.org/10.2139/ssrn.2221280

Livio Oliveira (Contact Author)

Departamento de Economia e Estatística da Secretaria de Planejamento, Governança e Gestão do Rio Grande do Sul ( email )

Rua Duque de Caxias, 1691, Centro Histórico
Porto Alegre, Rio Grande do Sul 90010-283
Brazil
55-(51) 3216 9000 (Phone)
55 (51) 3216 9135 (Fax)

Giacomo Balbinotto Neto

Federal University of Rio Grande do Sul (UFRGS) ( email )

AV. JOAO PESSOA 52 3 ANDAR (PPGE)
UFRGS/PPGE
Porto Alegre RS CEP 90480-004, RS 90.040-000
Brazil
+55 51 33083150 (Phone)

HOME PAGE: http://www.ppge.ufrgs.br/giacomo

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