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Publicly Available Published by De Gruyter Oldenbourg January 12, 2016

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

  • Johannes Abeler , Steffen Altmann , Sebastian J. Goerg and Matthias Wibral
From the journal Analyse & Kritik

Abstract

In this article, we discuss recent evidence from experimental economics on the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments: individual pay-for-performance wage schemes maximize of efficiency but might lead to inequitable outcomes. We present findings from laboratory experiments that show under which circumstances partially incomplete contracts can create equitable work environments while at the same time reaching surprisingly efficient outcomes.

Online erschienen: 2016-1-12
Erschienen im Druck: 2011-5-1

© 2011 by Lucius & Lucius, Stuttgart

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