Wage rigidity in a competitive incomplete contract market

Journal of Political Economy

Volumn 107, Issue 1, 1999, Pages 106-134

  Fehr, Ernst ^a   Falk, Armin ^a  

^a UNIVERSITY OF ZURICH   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

LABOR MARKET; UNEMPLOYMENT; WAGE DETERMINATION;

EID: 0033012738     PISSN: 00223808     EISSN: None     Source Type: Journal    
DOI: 10.1086/250052     Document Type: Article

References (52)

1. Adams, J. Stacy. "Wage Inequities, Productivity and Work Quality." Indus. Relations 3 (October 1968): 9-16.
2. _. "Inequity in Social Exchange." In Advance in Experimental Social Psychology, vol. 2, edited by Leonard Berkowitz. New York; Academic Press, 1965.
3. Agell, Jonas, and Lundborg, Per. "Theories of Pay and Unemployment: Survey Evidence from Swedish Manufacturing Firms." Scandinavian J. Econ. 97 (June 1995): 295-307.
4. Argyle, Michael, The Social Psychology of Work. 2d ed. Harmondsworth, U.K.: Penguin, 1989.
5. Azariadis, Costas, "Implicit Contracts and Underemployment Equilibria." J.P.E. 83 (December 1975): 1183-1202.
6. Baker, George P. "Incentive Contracts and Performance Measurement." J.P.E. 100 (June 1992): 598-614.
7. Berg, Joyce; Dickhaut John W.; and MCCabe Kevin A. "Trust, Reciprocity, and Social History." Games and Econ. Behavior 10 (July 1995): 122-42.
8. Bewley, Truman F. "A Depressed Labor Market as Explained by Participants." A.E.R. Papers and Proc. 85 (May 1995); 250-54.
9. _. "A Depressed Labor Market as Explained by Participants." Book manuscript. New Haven, Conn.: Yale Univ., Cowles Found., July 31, 1997.
10. Blinder, Alan S., and Choi, Don H. "A Shred of Evidence on Theories of Wage Stickiness." Q.J.E. 105 (November 1990): 1003-15.
11. Camerer, Colln F., and Thaier, Richard H. "Ultimatums, Dictators and Manners." J. Econ. Perspectives 9. (Spring 1995): 209-19.
12. Cameron, Lisa. "Raising the Stakes in the Ultimatum Game: Experimental Evidence from Indonesia." Manuscript, Princeton, N.J.: Princeton Univ., Dept. Econ., 1995.
13. Campbell, Carl M., III, and Kamlani, Kunal S. "The Reasons for Wage Rigid- ity: Evidence from a Survey of Firms." Q.J.E. 112 (August 1997): 759-89.
14. Carmichael, H. Lorne, "Can Unemployment Be Involuntary? Comment." A.E.R. 75 (December 1985): 1213-14.
15. _. "Efficiency Wage Models of Unemployment - One View." Econ. Inquiry 28 (April 1990): 269-95.
16. Cialdini, Robert B. Influence: Science and Practice. 3d ed. New York Quill William Morrow, 1993.
17. Cropanzano, Russell, and Folger, Robert. "Procedural Justice and Worker Motivation." In Motivation, and Work Behavior, 5th ed., edited by Richard M. Steers and Lyman W. Porter, New York: MCGraw-Hill, 1991.
18. Falk, Armin; Gächter, Simon; and Kovács, Judit. "Intrinsic Motivation and Extrinsic Incentives in a Repeated Game with Incomplete Contracts." J. Econ. Psychology (1998), in press.
19. Fehr, Ernst; Gächter, Simon; and Kirchsteiger, Georg. "Reciprocity as a Contract Enforcement Device: Experimental Evidence." Econometrica 65 (July 1997): 833-60.
20. Fehr, Ernst; Kirchler, Erich; Weichbold, Andreas; and Gächter, Simon. "When Social Norms Overpower Competition." Manuscript. Zurich: Univ. Zurich, Dept. Econ., 1994.
21. Fehr, Ernst; Kirchsteiger, Georg; and Riedl, Arno. "Does Fairness Prevent Market Clearing? An Experimental Investigation." Q.J.E. 108 (May 1993): 437-59.
22. Fehr, Ernst, and Schmidt, Klaus. "A Theory of Fairness, Competition and Cooperation," Manuscript, Zurich: Univ. Zurich, Dept, Econ., 1997.
23. Fehr, Ernst, and Tougareva, Elena, "Do High Stakes Remove Reciprocal Fairness - Evidence from Russia." Manuscript Zurich: Univ. Zurich, Dept. Econ., 1995.
24. Friedman, Daniel, and Rust, John, eds. The Double Auction Market: Institutions, Theories and Evidence. Santa Fe Inst. Series in the Science of the Complexity, Proceedings vol. 14. Reading, Mass.: Addison-Wesley, 1993.
25. Gode, Dhananjan K., and Sunder, Shyam. "Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality." J.P.E. 101 (February 1993): 119-37.
26. Grossman, Sanford J., and Hart, Oliver D. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration." J.P.E. 94 (August 1986); 691-719.
27. Güth, Werner; Sehmittberger, Rolf; and Schwarze, Bernd. "An Experimental Analysis of Ultimatum Bargaining." J. Econ. Behavior and Organization 3 (December 1982): 367-88.
28. Hart, Oliver D. Firms, Contracts, and Financial Structure. Oxford: Clarendon, 1995.
29. Holmström, Bengt, and Milgrom, Paul. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership and Job Design." J. Law, Econ. and Organization 7 (special issue; 1991): 24-52.
30. Holt, Charles A. "Industrial Organization: A Survey of Laboratory Research." In The Handbook of Experimental Economics, edited by John H. Kagel and Alvin E. Roth, Princeton, N.J.: Princeton Univ. Press, 1995.
31. Kachelmeier, Steven J., and Shehata, Mohamed. "Culture and Competition: A laboratory Market Comparison between China and the West." J. Econ. Behavior and Organizationn 19 (October 1992): 145-68.
32. Katz, Lawrence F. "Efficiency Wage Theories: A Partial Evaluation." In NBER Macroeconomies Annual, edited by Stanley Fischer. Cambridge, Mass.: MIT Press, 1986.
33. Lawler, Edward E. Motivation in Work Organizations. San Francisco: Jossey-Bass, 1994.
34. Lindbeck, Assar, and Saower, Dennis J. The Insider-Outsider Theory of Employment and Unemployment. Cambridge. Mass.: MIT Press, 1988.
35. Lynch, Michael; Miller, Rosn M.; Plott, Charles R.; and Porter, Russell. "Product Quality, Informational Efficiency, and Regulations in Experimental Markets," In Research in Experimental Economics, vol. 4, edited by R. Mark Isaac, Greenwich, Conn.: JAI, 1991.
36. Milgrom, Paul, and Roberts, John. Economics, Organization, and Management. Englewood Cliffs, N.J.: Prentice-Hall, 1992.
37. Miller, Sven. "Strategienuntersuchung zum Investitionsspiel von Berg, Dickhaut, MCCabe," Diploma thesis, Univ, Bonn, 1997.
38. Mortensen, Dale T. "Job Search and Labor Market Analysis." In Handbook of Labor Economics, vol. 2, edited by Orley Ashenfelter and Richard Layard. Amsterdam: North-Holland, 1986.
39. Mowday, Richard T. "Equity Theory Predictions of Behavior in Organizations." In Motivation and Work Behavior, 5th ed., edited by Richard M. Steers and Lyman W. Porter, New York: MCGraw-Hill, 1991.
40. Murphy, Kevin M., and Topel. Robert H. "Ability Bias in Models of Earnings: New Methods and Evidence." Manuscript, Chicago: Univ. Chicago, Dept. Econ., 1989.
41. _. "Efficiency Wages Reconsidered: Theory and Evidence." In Advances in the Theory and Measurement of Unemployment, edited by Yoram Weiss and Gideon Fishelson. London: Macmillan, 1990.
42. Plott, Charles R. "An Updated Review of Industrial Organization: Applications of Experimental Methods," In Handbook of Industrial Organisation, vol 2, edited by Richard Schmalensee and Robert D. Willig. Amsterdam: North-Holland, 1989.
43. Roth, Alyin E. "Bargaining Experiments." In The Handbook of Experimental Economics, edited by John H. Kagel and Alvin E. Roth. Princeton, N.J.: Princeton Univ. Press, 1995.
44. Smith, Vernon L. "An Experimental Study of Competitive Market Behavior." J.P.E. 70 (April 1962): 111-37.
45. _. "Experimental Economics: Induced Value Theory." A.E.R. Papers and Proc. 66 (May 1976): 274-79.
46. _. "Microeconomic Systems as an Experimental Science." A.E.R. 72 (December 1982): 923-55.
47. Solow, Robert M. The Labour Market, as a Social Institution, Oxford: Blackwell, 1990.
48. Steers, Richard M., and Porter, Lyman W., eds. Motivation and Work Behavior. 5th ed. New York: MCGraw-Hill, 1991.
49. Thaler, Richard H. "Anomalies: The Ultimatum Game." J. Econ. Perspectives 2 (Fall 1988): 195-206.
50. Tversky, Amos, and Kahneman, Daniel. "Loss Averaion in Riskkss Choice: A Reference-Dependent Model." Q.J.E. 106 (November 1991): 1039-61.
51. Williamson, Oliver E. Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press, 1975.
52. _. The Economic Institution of Capitalism: Firms, Markets, Relational Contracting. New York, Free Press, 1985.