The Lobbying Game for Recruitment in Asymmetric Information

Abstract

Because the interests of the manager and the organization are not necessarily coincident, the principal-agent problem arises in the process of recruitment. The standard of employment and the motive in the manager`s mind may influence the result of recruitment. The present paper analyzes a game in which the recruit may lobby the manager. We discuss the equilibrium when the manager has a prejudice against some applicant or has a consideration about his own future promotion prospects.