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.
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- Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2005.
"Fairness and Contract Design,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
67, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2007. "Fairness and contract design," Munich Reprints in Economics 20618, University of Munich, Department of Economics.
- Antonio Nicita & Matteo Rizzolli, 2010.
"The case for the virtual strike,"
Portuguese Economic Journal,
Springer, vol. 9(1), pages 75-75, April.
- Charness, Gary B, 2004.
"Attribution And Reciprocity In An Experimental Labor Market,"
University of California at Santa Barbara, Economics Working Paper Series
qt8rp6b18c, Department of Economics, UC Santa Barbara.
- 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.
- 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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