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Social preferences, accountability, and wage bargaining

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  • Kocher, Martin G.
  • Poulsen, Odile
  • Zizzo, Daniel J.

Abstract

We assess the extent of preferences for employment in a collective wage bargaining situation with heterogeneous workers. We vary the size of the union and introduce a treatment mechanism transforming the voting game into an individual allocation task. Our results show that highly productive workers do not take employment of low productive workers into account when making wage proposals, regardless of whether insiders determine the wage or all workers. The level of pro-social preferences is small in the voting game, while it increases as the game is transformed into an individual allocation task. We interpret this as an accountability effect.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 14039.

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Date of creation: Sep 2012
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Handle: RePEc:lmu:muenec:14039

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Keywords: social preferences; wage bargaining; accountability; collective decision making;

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  1. Jim Engle-Warnick & Sonia Laszlo Author Email: sonia.laszlo@mcgill.ca, 2006. "Learning By Doing In An Ambiguous Environment," Departmental Working Papers, McGill University, Department of Economics 2006-29, McGill University, Department of Economics.
  2. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer, Springer, vol. 13(1), pages 75-98, March.
  3. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
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