Why do career outcomes in organizations follow highly skewed distributions when the individual traits presumed to drive success — competence, effort, and social skill — are approximately normally distributed in the population? This agent-based model investigates the relative contributions of individual attributes versus random events (“luck”) to career outcomes in hierarchically structured organizations.

The model places 500 agents in a five-level pyramid-shaped organization over 80 six-month evaluation periods (40 simulated years). Each agent is characterized by four attributes drawn from normal distributions at initialization: competence, effort, social skill, and adaptability. In each period, agents may encounter stochastic career events (good or bad projects, supportive or poor managers, market booms or busts), which modify their performance and visibility scores. Promotion decisions are made competitively when vacancies arise at higher levels, using a weighted combination of recent performance, accumulated visibility, network position, and tenure. Social connections form and decay through a proximity-based model influenced by agents’ social skills.

The model extends the talent-versus-luck framework of Pluchino et al. (2018) in four substantive directions: (1) it embeds agents in a hierarchical organization with finite positions at each level, making promotion a zero-sum competition rather than an abstract encounter with random events; (2) it represents individual differences along four independent attribute dimensions rather than a single talent score; (3) it incorporates dynamic social network formation that mediates access to career-relevant opportunities; and (4) it implements the Peter Principle mechanism through which promoted agents must acquire competence appropriate to their new role.

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