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The co-evolution of reciprocity-based wage offers and effort choices

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  • Schliffke, Philipp

Abstract

I 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.

Suggested Citation

  • Schliffke, Philipp, 2012. "The co-evolution of reciprocity-based wage offers and effort choices," Economics Letters, Elsevier, vol. 117(1), pages 326-329.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:326-329
    DOI: 10.1016/j.econlet.2012.05.033
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    References listed on IDEAS

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    JEL classification:

    • C - Mathematical and Quantitative Methods
    • D - Microeconomics
    • J - Labor and Demographic Economics

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