This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Wages, Length of Relationship and Bargaining Power: An experimental study in a world of complete contracts Author info | Abstract | Publisher info | Download info | Related research | Statistics Dennis A.V. Dittrich ()
Additional information is available for the following
registered author(s):
To explain potential sources of wage rigidity this article analyzes a model of reciprocal kindness applied to a repeated ultimatum game with changing and nonzero conflict payoffs. The model is also tested in a laboratory experiment. The results are compatible with the rentsharing approach to wage rigidity. Wages adjust to 'market pressure' but are less flexible when employees demand their wages, i. e. when they are in a relatively strong bargaining position.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number
2004-18.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length: 24 pages
Date of creation: Mar 2004Date of revision:
Handle: RePEc:esi:discus:2004-18Contact details of provider: Postal: Kahlaische Strasse 10, D-07745 Jena Phone: +49-3641-68 65 Fax: +49-3641-68 69 90 Web page: http://www.econ.mpg.de/ More information through EDIRC
Order Information: Web: http://www.econ.mpg.de/english/research/ESI/discuss.php
For technical questions regarding this item, or to correct its listing, contact: (Karin Richter).
Keywords: rigid wages ; reciprocity ; labor market ; efficiency wages ; Other versions of this item:
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Akerlof, George A, 1982.
"Labor Contracts as Partial Gift Exchange ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 97(4), pages 543-69, November.
[Downloadable!] (restricted)
Guth, Werner & Tietz, Reinhard, 1990.
"Ultimatum bargaining behavior : A survey and comparison of experimental results ,"
Journal of Economic Psychology ,
Elsevier, vol. 11(3), pages 417-449, September.
[Downloadable!] (restricted)
Dan Kovenock & Kealoha Widdows & James B. Dworkin, 1991.
"A Model of Duopolistic Unionism Exhibiting Downward Wage Rigidity ,"
Canadian Journal of Economics ,
Canadian Economics Association, vol. 24(1), pages 55-69, February.
[Downloadable!] (restricted)
Other versions: Kirchler, Erich & Fehr, Ernst & Evans, Robert, 1996.
"Social exchange in the labor market: Reciprocity and trust versus egoistic money maximization ,"
Journal of Economic Psychology ,
Elsevier, vol. 17(3), pages 313-341, June.
[Downloadable!] (restricted)
Azariadis, Costas & Stiglitz, Joseph E, 1983.
"Implicit Contracts and Fixed Price Equilibria ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 98(3), pages 1-22, Supplemen.
Sheshinski, Eytan & Weiss, Yoram, 1977.
"Inflation and Costs of Price Adjustment ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 44(2), pages 287-303, June.
[Downloadable!] (restricted)
Peter Howitt, 2002.
"Looking Inside the Labor Market: A Review Article ,"
Journal of Economic Literature ,
American Economic Association, vol. 40(1), pages 125-138, March.
[Downloadable!] (restricted)
Fehr, Ernst & Gachter, Simon, 1998.
"Reciprocity and economics: The economic implications of Homo Reciprocans1 ,"
European Economic Review ,
Elsevier, vol. 42(3-5), pages 845-859, May.
[Downloadable!] (restricted)
Fehr, Ernst, et al, 1998.
"When Social Norms Overpower Competition: Gift Exchange in Experimental Labor Markets ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 16(2), pages 324-51, April.
[Downloadable!] (restricted)
John M. Abowd & Francis Kramarz & David N. Margolis, 1999.
"High Wage Workers and High Wage Firms ,"
Econometrica ,
Econometric Society, vol. 67(2), pages 251-334, March.
Other versions:
Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High-Wage Workers and High-Wage Firms ,"
CIRANO Working Papers
94s-23, CIRANO.
[Downloadable!] Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High Wage Workers and High Wage Firms ,"
NBER Working Papers
4917, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Judith Rich & Julian Teicher, 2002.
"Wage-fixing Behaviour of Managers in Australia ,"
British Journal of Industrial Relations ,
Blackwell Publishers Ltd/London School of Economics, vol. 40(2), pages 177-195, 06.
[Downloadable!] (restricted)
Sethi, Rajiv & Somanathan, E., 2003.
"Understanding reciprocity ,"
Journal of Economic Behavior & Organization ,
Elsevier, vol. 50(1), pages 1-27, January.
[Downloadable!] (restricted)
Other versions: Konings, Jozef & Walsh, Patrick P, 1994.
"Evidence of Efficiency Wage Payments in UK Firm Level Panel Data ,"
Economic Journal ,
Royal Economic Society, vol. 104(424), pages 542-55, May.
[Downloadable!] (restricted)
Other versions: Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994.
"Fairness in Simple Bargaining Experiments ,"
Games and Economic Behavior ,
Elsevier, vol. 6(3), pages 347-369, May.
[Downloadable!] (restricted)
Ernst Fehr & Urs Fischbacher, 2002.
"Why Social Preferences Matter -- The Impact of Non-Selfish Motives on Competition, Cooperation and Incentives ,"
Economic Journal ,
Royal Economic Society, vol. 112(478), pages C1-C33, March.
[Downloadable!] (restricted)
Levine, David I, 1992.
"Can Wage Increases Pay for Themselves? Tests with a Production Function ,"
Economic Journal ,
Royal Economic Society, vol. 102(414), pages 1102-15, September.
[Downloadable!] (restricted)
Falk, Armin & Gachter, Simon & Kovacs, Judit, 1999.
"Intrinsic motivation and extrinsic incentives in a repeated game with incomplete contracts ,"
Journal of Economic Psychology ,
Elsevier, vol. 20(3), pages 251-284, June.
[Downloadable!] (restricted)
Ernst FEHR & Simon GÄCHTER & Georg KIRCHSTEIGER, 1994.
"Reciprocal Fairness and Noncompensating Wage Differentials ,"
Vienna Economics Papers
vie9401, University of Vienna, Department of Economics.
Carpenter, Jeffrey P., 2003.
"Is fairness used instrumentally? Evidence from sequential bargaining ,"
Journal of Economic Psychology ,
Elsevier, vol. 24(4), pages 467-489, August.
[Downloadable!] (restricted)
Shapiro, Carl & Stiglitz, Joseph E, 1984.
"Equilibrium Unemployment as a Worker Discipline Device ,"
American Economic Review ,
American Economic Association, vol. 74(3), pages 433-44, June.
[Downloadable!] (restricted)
Falk, Armin & Fehr, Ernst, 2003.
"Why labour market experiments? ,"
Labour Economics ,
Elsevier, vol. 10(4), pages 399-406, August.
[Downloadable!] (restricted)
Dufwenberg, Martin & Kirchsteiger, Georg, 2000.
"Reciprocity and wage undercutting ,"
European Economic Review ,
Elsevier, vol. 44(4-6), pages 1069-1078, May.
[Downloadable!] (restricted)
Hanes, Christopher, 1993.
"The Development of Nominal Wage Rigidity in the Late 19th Century ,"
American Economic Review ,
American Economic Association, vol. 83(4), pages 732-56, September.
[Downloadable!] (restricted)
Kimura, Takeshi & Ueda, Kazuo, 2001.
"Downward Nominal Wage Rigidity in Japan ,"
Journal of the Japanese and International Economies ,
Elsevier, vol. 15(1), pages 50-67, March.
[Downloadable!] (restricted)
Ernst Fehr & Armin Falk, 1999.
"Wage Rigidity in a Competitive Incomplete Contract Market ,"
Journal of Political Economy ,
University of Chicago Press, vol. 107(1), pages 106-134, February.
[Downloadable!] (restricted)
Other versions: Solow, Robert M, 1985.
" Insiders and Outsiders in Wage Determination ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 87(2), pages 411-28.
Solow, Robert M., 1979.
"Another possible source of wage stickiness ,"
Journal of Macroeconomics ,
Elsevier, vol. 1(1), pages 79-82.
[Downloadable!] (restricted)
Smith, Jennifer C, 2000.
"Nominal Wage Rigidity in the United Kingdom ,"
Economic Journal ,
Royal Economic Society, vol. 110(462), pages C176-95, March.
[Downloadable!] (restricted)
McLaughlin, Kenneth J., 1994.
"Rigid wages? ,"
Journal of Monetary Economics ,
Elsevier, vol. 34(3), pages 383-414, December.
[Downloadable!] (restricted)
Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986.
"Fairness as a Constraint on Profit Seeking: Entitlements in the Market ,"
American Economic Review ,
American Economic Association, vol. 76(4), pages 728-41, September.
[Downloadable!] (restricted)
Rabin, Matthew, 1993.
"Incorporating Fairness into Game Theory and Economics ,"
American Economic Review ,
American Economic Association, vol. 83(5), pages 1281-1302, December.
[Downloadable!] (restricted)
Akerlof, George A & Yellen, Janet L, 1985.
"A Near-rational Model of the Business Cycle, with Wage and Price Intertia ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 100(5), pages 823-38, Supp..
[Downloadable!] (restricted)
Bewley, Truman F, 1995.
"A Depressed Labor Market as Explained by Participants ,"
American Economic Review ,
American Economic Association, vol. 85(2), pages 250-54, May.
[Downloadable!] (restricted)
Dhillon, Amrita & Petrakis, Emmanuel, 2002.
"A generalised wage rigidity result ,"
International Journal of Industrial Organization ,
Elsevier, vol. 20(3), pages 285-311, March.
[Downloadable!] (restricted)
Gachter, Simon & Falk, Armin, 2002.
" Reputation and Reciprocity: Consequences for the Labour Relation ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 104(1), pages 1-26.
[Downloadable!] (restricted)
Other versions: Urs Fischbacher, 2007.
"z-Tree: Zurich toolbox for ready-made economic experiments ,"
Experimental Economics ,
Springer, vol. 10(2), pages 171-178, June.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? You can use convenient plug-ins to search directly IDEAS from your browser.
This page was last updated on 2009-11-25.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .