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Virtual vs. Standard Strike: An Experiment

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  • Alessandro Innocenti

    ()

  • Antonio Nicita

    ()

Abstract

In this paper we compare - in the laboratory - stoppage and virtual strike. Our experiment confirms that higher wages offered by an employer lead to considerably more costly effort provision. The number of strikes, the level of efforts and average total payoffs are higher under virtual strike than under standard strike. However, when standard strike is associated with reciprocal externalities, it induces higher effort levels, higher payoffs and an extremely reduced number of strikes than virtual strike. It is unclear whether this behavior re?ects reciprocity or other forms of social preferences. However our results might explain why standard strikes rather than virtual ones are generally adopted by workers.

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Bibliographic Info

Paper provided by University of Siena in its series Labsi Experimental Economics Laboratory University of Siena with number 026.

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Date of creation: Jun 2009
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Handle: RePEc:usi:labsit:026

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Related research

Keywords: virtual strike; cooperation; reciprocity; fairness; experiments;

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References

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  1. Ernst Fehr & Alexander Klein & Klaus M Schmidt, 2007. "Fairness and Contract Design," Econometrica, Econometric Society, vol. 75(1), pages 121-154, 01.
  2. Gary Charness & Peter Kuhn, 2007. "Does Pay Inequality Affect Worker Effort? Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 693-723.
  3. Antonio Nicita & Matteo Rizzolli, 2009. "The case for the virtual strike," Portuguese Economic Journal, Springer, vol. 8(3), pages 141-160, December.
  4. Gary Charness, 2004. "Attribution and Reciprocity in an Experimental Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 665-688, July.
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Cited by:
  1. Antonio Nicita & Matteo Rizzolli, 2009. "The Case for the Virtual Strike. An Appraisal of the Italian Proposal," Department of Economics University of Siena 557, Department of Economics, University of Siena.

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