Virtual vs. Standard Strike: An Experiment
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.
|Date of creation:||Jun 2009|
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- Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2007.
"Fairness and contract design,"
Munich Reprints in Economics
20618, University of Munich, Department of Economics.
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"The case for the virtual strike,"
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- 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.
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