Monk business: An example of the dynamics of organizations

In this paper we present a dynamic model of an organization. It is shown that the quality of the members of the organization may change cyclically and that even if the organization promotes excellence, the organization may end up populated mostly by mediocre agents.I am grateful to Carmen Beviá, Clara Eugenia García, Iñigo Iturbe-Ormaetxe, Ignacio Ortuño-Ortín, Piero Gottardi, an anonymous referee and the participants in a seminar in the Institute for Advanced Studies, Vienna for very helpful comments and to CICYT for financial support under grant BEC2002-02194.