The co-evolution of reciprocity-based wage offers and effort choices
AbstractI study the evolution of reciprocity in a gift-exchange game. In equilibrium, wage offers induce maximal effort but there is strong inequity in favor of the workers. The result suggests that norm-based efficiency wages may be unstable over time.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 1 ()
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Reciprocity; Gift-exchange; Indirect evolution; Efficiency wages;
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