Promoting the best as an incentive : reply to Pluchino et al. on the Peter Principle
The Peter Principle states that employees tend to be promoted until they reach their level of incompetence. In a sophisticated simulation study, Pluchino et al (2010) confirmed a version of the principle. However, they also noted that their model has the counterintuitive consequence that “the best ways for improving the efficiency of a given organization are either to promote each time an agent at