Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.

Question

What will be an ideal response?

Answer 1

Asymmetric information exists when all parties do not have full information or when some information is being withheld. In order to gain tenure, among other things, professors must publish considerably over a long period of time. Publications not only signal skills and ability, but also productivity. In the absence of the requirement of publications for tenure, some professors might choose to not publish as much, if not at all. These professors know something about themselves that the tenure committee may not: they do not enjoy publishing or at least would not choose to do it to the same degree in the absence of the requirement. Some may publish solely to earn the reputation needed to achieve tenure. Once tenure is achieved, those who were only productive in the publication sense in order to gain tenure will become less so as there is no need to build their reputation any longer. (This is assuming no other advancement is desired.)